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Lienholder or Loss Payee

Insurance

On the insurance for my financed or leased vehicle, why do you need to be listed as "Lienholder" or "Loss Payee"?

As the lienholder on your financed vehicle, SETF has a security interest in your vehicle and on any insurance claims that may be paid during the term of your contract. If you leased your vehicle, VT Inc. as Trustee of World Omni LT is the owner of your leased vehicle, and is listed as the Loss Payee on your policy. This is to ensure the proceeds from insurance settlements are used to repair damages to the vehicle.