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INSURANCE DOCUMENT ISSUED TO ORDER

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QUESTION
Key writes:
Good'day Mr. Old Man,
DC called for insurance cert/policy endorsed in blank, for full cif value ….. and insurance document presented showing Insured party in the name of the applicant and endorsed by beneficiary, does it constitue a disp.?
what if insured party showing as "To order" and endorsed by beneficiary? Can i accept this docs?.
Appreciate yr comments.
Thanks.
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ANSWER
Hi,

If the insurance document indicates the applicant as the insured party, then it is the applicant that will endorse the document if needed. The beneficiary is not the insured party in this case, hence, he is not in position to endorse the document. It's a discrepancy.

An insurance document should not be issued to order or to the order of the beneficiary as it is not a negotiable document like a bill of lading. However, this bad practice remains unchanged somewhere in the world of DC. Therefore, the fact that the insurance document is issued to order and endorsed by the beneficiary is acceptable.
Best regards,

Mr. Old Man

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