What Does Payee Mean?
A payee is a party to whom money is paid. In the context of insurance, insurance companies and policyholders can each act as payees to the other.
Insuranceopedia Explains Payee
Insurance companies are payees to the policyholder when they receive their regular insurance premium payments. The policyholders, on the other hand, are the payees to the insurer when they file a successful and claim and receive compensation for their losses.