|Collateral Protection (VSI)
The requirement, found in all conditional sales
contracts and related security agreements, is the borrower
must keep the financed vehicle(s) insured with a loss payable
clause in favor of the lender.
Our objective for our lenders is to minimize time and labor
expense associated with insurance follow-up and provide optimum
protection for your uninsured collateral thru a system tailored
to your needs and preferences.
All eligible loans you elect to be covered by the collateral
protection master policy, will be protected at all times.
As our computer tracking system identifies uninsured collateral,
it produces letters to those borrowers requesting they provide
physical damage coverage. If they fail to respond to those
letters, the tracking system issues coverage and the lender
advances funds for the premium, which is added to the borrower's
We currently offer the following methods for administrating
the Lender's Insurance Program:
- Insurance Center - Acting as your insurance department,
our employees update all insurance, answer all borrower's
inquiries thru use of an 800 number. Lender is responsible
for assessing all premiums to borrowers notes. And has final
authority on all policies.
- Personal Computer - we offer software to run on your p/c
to maintain program. You have a self-contained insurance
monitoring system at your fingertips.
- E. Lender - Allows access to our insurance tracking system
and claims system via our web site - all online.
Premium rates are available upon request
for those programs, plus all state available miscellaneous
|Back to Basics - Over the past
10 years, single interest insurance premiums have steadily increased
due to increased coverage and resulting losses due to these
coverage. These premiums have become burdensome, not only to
our borrowers, but to the lenders that add them to loans and
haven't collected the premiums, usually at the end of a note.
Single interest insurance was created to protect a lender from
physical damage loss to collateral, but has evolved beyond that.
With our new "Back to Basics" program, we now
offer a program that reverts back to the original intent of
the product at a premium rate that is fair and equitable to
your borrower and lender alike. To make the program even easier,
the premium is the same for most of the loans that would be
insured, $575.00 for a one year policy, for any loan up to
Many of your borrowers will find this coverage is cheaper
than coverage they can obtain through the regular insurance
market. However, we do not encourage borrowers to opt for
this coverage over their own insurance because this does not
protect their equity in the collateral, but it does fulfill
their obligation to the lender.
As with our other single interest programs, we will provide
our insurance tracking services and our claims services.
Under the "Back to Basics" program, coverage will
be limited to Comprehensive & Collision only, with a $466.00
deductible to both the borrower and lender. The collateral
must be repossessed to file a claim, unless the borrower is
no more than thirty (30) days delinquent, in which case a
non-repossession claim can be filed.