What clause is used to cover the interest of a secured lender in personal property?

The Loss Payable Clause is utilized to protect the interests of a secured lender in personal property. This clause ensures that in the event of a loss, such as damage or destruction of the property, the proceeds from the insurance policy are paid directly to the lender up to the amount owed on the loan. This creates a safeguard for the lender, as their financial interest in the property is acknowledged and addressed in the insurance coverage.

In the context of personal property, this clause is critical because lenders often require borrowers to insure the collateral they provide to secure loans. By including a Loss Payable Clause in the insurance policy, both parties have clarity on the terms of compensation in the event of a loss, and the lender can ensure they are compensated for their financial interest prior to any distribution of funds to the insured.

The other choices do not fulfill this specific purpose. The Market Value Clause relates to the valuation of the insured item based on its market value at the time of loss, the Monoline Clause refers to insurance that covers only one type of risk, and the Named Insured Clause identifies who is covered under the policy but does not address the interests of a lender. Therefore, the Loss Payable Clause is the correct choice for this context.