Why does insurance send a claim settlement check in the insured name and the lenders name?

In most states it is the law that the insurance company must put both names on the check if it is over a certain amount. Here in Georgia the threshold is $500. This law was passed at the request of the bank lobby several years ago. The reason is that if you owe a bank or finance company for the vehicle this is the way their collateral is guaranteed that it is repaired. This wasn't a problem when we did business with the local bank. Now your finance company may be across the country and they still don't want to endorse the check until the repairs are done. If you sign the check and turn it over to your body shop, they usually handle the rest for you.