VSI - Blanket Single Interest
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Blanket Single Interest Insurance will protect your institution from uninsured losses while also relieving you of the responsibility of employing a tracking system for the insurance on your loans. Because of the blanket nature of the policy, you are able to eliminate the administrative hassles and time consumption that is common when tracking insurance policies on your loans. By having our Blanket Policy in place, there will no longer be a need for constant phone calls, letters, and faxes being sent between your borrowers, insurance companies, local insurance agents, and your institution. There are several coverages available under our blanket plan:
1. All Risk Physical Damage Coverage - This is the basic coverage in the policy that provides blanket insurance on all covered collateral (on both existing and new loans). This coverage will cover losses on repossessed collateral with uninsured damage.
2. Non-Filing Coverage - Covers losses caused by unintentional failure to file or errors in filing liens on covered collateral.
3. Skip and Confiscation Coverage - Covers losses caused by a borrower's disappearance with your collateral. We will first do a 60 day skip trace on the borrower and collateral and if we are unable to locate them it will be considered a total loss to be paid under the policy. Confiscation coverage will cover losses caused by the confiscation of your collateral by a public officer or office.
4. Repossessed Physical Damage Coverage - Covers physical damage losses sustained within sixty days after repossession of your collateral.
5. GAP Coverage - Covers the difference between the actual cash value of a vehicle and your principal loan balance in the event of a total loss under this policy. This coverage can add significantly to the amount that your institution receives when filing claims. With this coverage you would be assured of never receiving a book value settlement.
Similar Home Equity/Second Mortgage Protection Available ...more info
*NOTE: Please refer to the actual insurance policy for detailed explanations of these coverages and their applicable exclusions.
Covered Collateral
and Limits
This plan
will cover private passenger autos, vans, pickup trucks up to (1) one
ton load capacity, recreational vehicles, motorcycles, and watercraft
(and almost any other titled or UCC filed collateral). There is no limit
of liability on autos, vans and pickups, and there is a $50,000 original
balance limit on all other collateral (this limit can be raised if necessary).
The original term on all collateral must be 72 months or less (RV's and
watercraft up to 120 months, and mobile homes up to 144 months are covered,
and these limits can be raised if necessary).
Monthly Premium
Report
The only
administrative work that is required each month is a reporting form for
your premium. You enter the total number of covered loans that were made
during the month and multiply by the premium per loan. The reporting form
and a check for the total premium is sent to the insurance company.
Claims
To submit
a claim, you fill out a one-page "loss notice" and send it to
the insurance company along with loan information (copy of the note, title,
payment history, etc.). An adjuster is then assigned to obtain damage
estimates, salvage bids, and photographs. This information is then sent
to the company for calculation of the claim payment. Claims are settled
by paying the lesser of the principle loan balance, cost of repair, or
the actual cash value of the collateral (with GAP Coverage, the actual
cash value settlement option would be eliminated in the event of a total
loss). There is no deductible with this policy. The actual cash value
is based on an average of the NADA wholesale and NADA retail values.
Claims must be reported within 20 days of the date of loss. All claims are settled within 20 days if the financial institution submits all necessary information and the adjuster obtains his information in a timely manner. Skip claims must be reported within 180 days of the first delinquency on the loan.
Rate Stability
The rate
we establish per covered loan is based on the coverages you choose and
on the answers to your original application for a rate quotation. This
rate should remain stable. However, if the financial institution's loss
ratio is much higher than expected the rate will be increased, but only
with your consent. We will always consult with you prior to making any
rate or coverage changes.
Passing on the VSl
rate/APR issues
The rate
per loan that we have established for your institution can be passed on
to your borrowers in any way that you see fit. Some institutions simply
raise existing fees by our rate, while most separately disclose our fee
in the "Single Interest Insurance" block located on your loan
documents. Per regulation "Z" paragraph 226.4, our rate per
loan is not reflected in the APR if it is disclosed in the "Single
Interest Insurance" block. You simply add our fee to the amount financed.
For more information feel free to Contact Golden Eagle Insurance
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