What must a policyholder do to list a Loss Payee in a PAP?

Listing a Loss Payee in a Personal Auto Policy (PAP) is a specific process that typically requires that the Loss Payee be explicitly identified on the Declarations page of the policy. This inclusion serves to notify the insurance company of the interested party and ensures they are covered in the event of a loss. The Declarations page outlines the essential details of the policy, including coverage limits, insured parties, and any Loss Payees, thereby making it clear who has an insurable interest in the vehicle.

This process is significant because it provides legal recognition of the Loss Payee's rights to any insurance proceeds resulting from a covered loss. By having it documented upfront in the policy rather than post-incident, the policyholder ensures that all parties are informed and protected from the start. Therefore, to appropriately integrate a Loss Payee into a PAP, it must be listed directly on the Declarations page.