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Consumer Loan Products |
Lenders Single Interest Insurance (LSI)LSI 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 LSI policy to create a comprehensive solution for the consumer lender. Coverage is available on most items of collateral including vehicles, watercraft, recreational vehicles, personal property, and mobile homes. Our broad-form policy includes four areas of coverage:
- All Risk Physical Damage Insurance
- Instrument Non-filing Errors & Omissions Insurance
- Confiscation & Skip Insurance
- Repossessed Property Insurance
Normally, coverage can be provided on the lender’s outstanding loan portfolio without a deposit premium required. A provision to waive the insurer’s right to subrogate against the borrower can be added to the policy. In most states, this allows the lender to pass on the cost of the LSI insurance to the borrower in conformity with Section 226.4 of Reg Z, resulting in a zero cost basis for the coverage.
Additional Available Features: Mechanics Lien Coverage, Towing & Storage Coverage, Limited ACV Waiver Coverage, etc.
To download an application for LSI coverage follow this link: LSI Application
Collateral Protection Insurance (CPI)For those lenders who do not qualify for blanket coverage, or who do not want to, or can't, pass on the blanket coverage fee, Collateral Protection Insurance can be the answer. Each loan is tracked for coverage, either internally by the lender, or by a third party tracking company. As it is determined that the borrower does not have appropriate insurance, the coverage is force-placed under a master policy. CPI provides protection on the same types of collateral as blanket LSI coverage with similar limits and coverages applying.
We have web-based placement capability for lenders who track loans internally, or we partner with third-party tracking facilities to relieve the lender of the cost and responsibility of keeping up with insurance cancellations.
To download an application for CPI coverage follow this link: CPI Application
GAP Insurance (GAP)GAP Insurance pays the lender for the difference (GAP) between a borrower’s loan balance and the insurance settlement in the event of a total loss or theft claim. As a result, the lender is able to market, at a profit, an agreement to the borrower that waives his loan balance in the event of such a loss.
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 significant additional 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 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
To download an application for GAP coverage on loans, follow this link: GAP Loan Application
To download an application for GAP coverage on leases, follow this link: GAP Lease Application
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