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Lien holder rights against insurance company
I work for a auto finance company and i am having trouble with an insurance company.
They do not want to issue a two party check with our company and customer on the check... the insurance company wants to place a body shop and the customer on the check, but we dont trust the body shop.
What laws in the state of Texas protect us? we want the check payable to us and the customer that way we can make sure the repairs come out fine...
I am not sure what Texas laws are (I only handle northwest claims). So you will want to double check with a local attorney.
My assessment is the following. You are the line holder, and there are "lien" clauses in any auto insurance policy. Read more here.
This means that the insurance company has a duty to you. You can formally put a settlement on the lien on the settlement by drafting a letter as the line holder (owner of the vehicle) and by "recalling" the lien holder and financial responsibility clauses of the auto policy.
Have this letter notarized and faxed (and mailed, overnight return receipt). This will force them to pay you first, regardless of what arrangements they have.
This is the way it works in all states in the northwest and I will not be surprise if it does not this way in Texas, but double check with a local lawyer.
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