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The Toyota Financial Corp loss payee clause is a provision in an insurance policy that designates Toyota Financial as the payee for any insurance claims related to a financed vehicle. This clause ensures that in the event of a total loss or damage to the vehicle, any insurance payout goes directly to Toyota Financial to cover the outstanding loan balance. This protects the lender's financial interest in the vehicle, ensuring they are compensated before any remaining funds are disbursed to the borrower.
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