Collateral Protection Insurance (CPI) effectively insures consumer property loans that become uninsured or are uninsurable.
When a member borrows for a vehicle, he or she agrees to maintain dual-interest insurance, protecting both the borrower and the credit union with comprehensive and collision coverage on the vehicle throughout the life of the loan. If the member’s insurance lapses, the credit union can “force-place” insurance on the member’s loan to protect its interest from damage or loss, adding the premium to the loan principal. If the member subsequently provides proof of insurance, a refund is issued.
Throughout the life of the loan, the CPI provider monitors proof of insurance to ensure that policies remain in force. If policies lapse, notices are sent in accordance with established procedures.
You can choose from a combination of the following coverages:
- All-Risk Physical Damage Coverage
- Automatic Coverage
- Waiver of Repossession Coverage
- Uncollected Premium Coverage
- Repossession and Return Expense Coverage
- Insufficient Insurance Coverage
- Confiscation Coverage
- Conversion (Skip) Coverage
- Instrument Non-Filing Errors and Omissions Coverage
- Repossessed Property Coverage
An Internet-based portal streamlines the insurance tracking process and enables you to establish insurance needs criteria on an individual loan and property level. By capturing and storing an inception-to-date history of all insurance transactions, a record of lapse and deficiency notifications, and the policy and claim records in one location, the system allows you easy access to as much detail as is necessary to manage individual member service inquiries. This Internet-based portal also serves as a risk management tool for executive-level analysis of the overall picture.
Contact CU Insurance Solutions today for more information at 207-773-0925 or complete the form below.