Collateral Protection Insurance

collateral protection insurance with trackingFULL COLLATERAL PROTECTION PLAN WITH TRACKING

Our CPI or Collateral Protection Insurance program is designed to protect both lending institutions and their borrowers.

If a borrower damages the collateral or has the collateral stolen or destroyed, will the borrower continue making loan payments?  Or, will the borrower stop making payments, create a collection problem, and ultimately cause a charge off?

Our partner program combines cutting-edge technology with superior attention to detail and outstanding client service — all to ensure you are provided confidence in your coverage.

CPI Q and A

  • Is insurance tracked?
  • Yes.
  • How is premium charged?
  • Only exposed borrowers pay.
  • How is the premium rate determined?
  • The premium charged to the borrower is in full compliance with the CFPB and does not include the cost of the lender coverages. Rate is a percentage of the outstanding loan balance determined through underwriting. Lender coverage's are separated from the borrower rate.
  • Who can file a claim?
  • Broad Form-Dual Interest Policy- coverage for the financial institution's borrower. The borrower can file the claim directly with claims department.
  • What is the limit of liability?
  • $100,000 (with higher limits available) lesser of loan balance, ACV, contract balance, limit of liability.
  • What is the coverage term?
  • Continuous until cancelled, individual certificates, coverage placed for 12 months
  • Are there refunds?
  • Yes, Pure pro rata, 1/365. 30 day grace period to provide insurance for full refund. Partial cancels and flat cancels.
  • Is there premium deficiency coverage?
  • Yes, coverage available when the loan is paid with exception of earned premium and if the vehicle is repossessed and there is uncollected earned premium.
  • Is there conversion and confiscation coverage (skip)?
  • Yes, this is one of the most important coverages with any type of collateral protection program.
  • What is the notification process to the member?
  • Prior to notifications mailed to the lenders member, our partner contacts the members agent. (Has the ability to make an outbound call to the member if requested).
  • Is the loan payment re-amortized?
  • Per the CU's preference, a loan file can be sent that can re-amortize the members monthly loan payment. This encourages the member to obtain insurance and decreases future premium charge offs.
  • Is there break in coverage charged?
  • No, we provide the member with a grace period to provide insurance. Free binding period during the notification process. 30 day grace period to provide insurance for full refund after notification process.
  • Is the program consumer friendly?
  • Our program provides comprehensive coverage to the lender and the borrower at a very competitive rate. Pure pro rata refunds will return the unearned premium to the borrower at a 1/365th basis, reducing the amount of earned premium ultimately charged to the member.