Collateral Protection Insurance
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.
Collateral Protection Insurance | FAQ's
- Is insurance tracked?
- Yes.
- How is the 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 coverages 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 the claims department.
- What is the limit of liability?
- $100,000 (with higher limits available) lesser of the loan balance, ACV, contract balance, the limit of liability.
- What is the coverage term?
- Continuous until canceled, individual certificates, coverage placed for 12 months
- Are there refunds?
- Yes, Pure pro-rata, 1/365. 30-day grace period to provide insurance for a full refund. Partial cancels and flat cancels.
- Is there premium deficiency coverage?
- Yes, coverage is available when the loan is paid with exception of earned premium and if the vehicle is repossessed and there is an 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 lender's member, our partner contacts the member's agent. (Has the ability to make an outbound call to the member if requested).
- Is the loan payment re-amortized?
- Per the lender's preference, a loan file can be sent that can re-amortize the member's monthly loan payment. This encourages the member to obtain insurance and decreases future premium charge-offs.
- Is there a break in coverage charged?
- No, we provide the borrower with a grace period to provide insurance. The free binding period during the notification process. 30-day grace period to provide insurance for a 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 on a 1/365th basis, reducing the amount of earned premium ultimately charged to the borrower.
