Consumer Loan Products
Blanket VSI Insurance
Vendors Single Interest Insurance is a blanket coverage concept that protects the lender’s consumer loan portfolio against the risk of uninsured physical damage loss to collateral, while eliminating the need to track the borrowers’ primary insurance policies. Additional coverage may be added to the policy to create a comprehensive solution for the lender. Coverage is available on most items of collateral including vehicles, watercraft, recreational vehicles, personal property, mobile homes, equipment, trailers, etc. Our broad-form policies typically include four areas of coverage:
- All Risk Physical Damage Insurance
- Instrument Non-filing Errors & Omissions Insurance
- Confiscation & Skip Insurance
- Repossessed Property Insurance
Coverage is normally available on the lender’s outstanding loan portfolio. A provision to waive the insurer’s right to subrogate against the borrower can be added to the policy as part of the requirements of Section 1026.4 of Regulation Z, which may allow the lender to pass on the cost of the premium to the borrower.
Additional Available Features: Mechanics Lien Coverage, Towing & Storage Coverage, Limited ACV Waiver Coverage, etc.
Take advantage of our decades of experience in this line of coverage and request a no-obligation quote, or an in-depth review and analysis of your current program. To download an application for VSI coverage click on the following link: Blanket VSI Application
Collateral Protection Insurance (CPI)
For those lenders who wish to place coverage on their collateral only when the borrower’s primary insurance lapses, lender-placed Collateral Protection Insurance is the solution. Each loan is tracked for coverage, either internally by the lender, or by a third-party tracking company. When it is determined that the borrower does not have the appropriate insurance, coverage is placed under a master policy. CPI provides protection on the same types of collateral as blanket VSI coverage, with similar limits and coverages applying.
We have web-based tracking and placement capability to assist those lenders who track loans internally, or we partner with third-party tracking facilities to relieve the lender of the costs and responsibilities associated with monitoring insurance cancellations. Our tracking partners maintain SSAE 16 audit credentials in order to meet the most strict vendor management requirements.
To download an application for CPI coverage follow this link: CPI Application
GAP Insurance (GAP)
GAP Insurance reimburses the lender for the difference (GAP) between a borrower’s loan balance and the insurance settlement received from the primary carrier in the event of a total loss or theft claim. This allows the lender to market a debt cancellation agreement to the borrower that waives the remaining loan balance in the event of such a loss. Fee income is derived by the lender on the GAP waiver and can result in a significant addition to the bottom line.
With low, and no, down payment loans being the rule more than the exception, a large percentage of borrowers could benefit from a GAP waiver. In addition to the obvious advantages for your borrower, the program creates fee income for the lender, reduces collection problems, creates good will with the borrower, and can turn a likely charge-off account into a new, income-producing loan. Key features can include:
- 60 Day “Free Look” for the Customer
- Allows for up to $1,000.00 in Deductible Buyback
- Allows for Financing of up to 150% of MSRP Including Add-ons, or 150% of NADA Retail Including Add-ons for Used Collateral
- Coverage for Both Direct and Indirect Loans
Credit Life and Disability
Credit Life and Disability affords your borrowers protection in unforeseen circumstances to ensure that they and their families are relieved of their financial burdens in the event of death or illness. As a commissionable product, this type of insurance can also be a source of fee income for the lender. We offer competitive terms and commission structures.
**DISCLOSURE: These are synopses only. Certain terms, limitations, and exclusions apply, which may change from time to time. Please refer to the policies for specific wording, and full terms and conditions.