- Broad Dual Interest Coverage
- Low cost to lender
- Requires borrower vehicle insurance tracking
- Highly regulated
- Common name is CPI or force-placed vehicle insurance
Collateral Protection Insurance is used to transfer physical damage, theft and other coverage associated with consumer and commercial vehicles that are typically contained in a Personal or Business Auto Policy (PAP, BAP). Collateral Protection Insurance Policies are dual interest policy meaning that both the borrower will have most coverages under the policy.
Collateral Protection Insurance is a master policy which is issued to the lender. Coverage is placed on loan collateral when a Notice of Insurance (NOI) is issued for the policy. Premium is billed to the lender who directly passes the premium charge to the borrower per their loan agreement. Limits and deductibles are underwritten to the requirements of the particular portfolio. Lender coverages are available and include various repossession expense reimbursements and skip tracing. These coverages must be paid by the lender. Once we understand the risk profile of your portfolio, the Miniter underwriting team will select from many of the physical damage and lender optional endorsements to customize the policy to maximize coverage at the lowest applied cost.
This policy form uses Notice of Insurance certificates (NOI) so software technology is required to efficiently place, monitor and invoice for these certificates. In addition, regulatory requirement require lenders to follow NAIC notification and billing procedures. Miniter’s offers three different delivery systems technology listed below along with the claims processing system that will be used to report a loss.
How Does Working With Us… Work?
The four items below provide you with a glimpse into the different types of services you can choose from to insure your loan portfolio against risk.