Collateral Protection Insurance
Our Collateral Protection Insurance (CPI) is not an off-the-shelf risk management product. The program is a business process that is uniquely tailored to your objectives. Our solution includes coverage that addresses your specific exposures, and identifies your unique characteristics as well as those of your borrowers. Bottom line - Members Insurance, Inc. provides peace of mind and complete portfolio protection.
- Annual collection
- Pro-rata earning
- Complete flexibility in designing lender coverage packages
- Flexibility in lender coverage limits, automatic waive limit and types of covered collateral
- Competitive deductible and premium schedule
Coverage is available for: private passenger automobiles, vans, light trucks, mobile homes, recreational vehicles, travel trailers, snowmobiles, jet skis, boats (non-commercial), trailers, and other approved collateral as financed under a security agreement. For complete definitions of coverage, please refer to the Collateral Protection Policy Form.
CPI Program Features
Designing an effective insurance package is a critical element of the successful risk management program. Every lending institution has unique objectives. Providing a broad spectrum of coverage alternatives is an important part of the our consulting process.
Borrower Policy Coverage
Covers loss to eligible property resulting from the upset of the covered property or collision of the covered property with another object
Covers accidental loss to covered property from breakage of glass and loss caused by missiles, falling objects, fire, theft or larceny, windstorm, hail, earthquake, explosion, riot or civil commotion, mischief or vandalism, water, flood, or colliding with a bird or animal.
Covers loss resulting from the removal, encumbrance, transfer concealment, intentional damage or other misappropriation of the covered property by a borrower, provided the named insured has perfected its security interest in the covered property prior to the date of loss. In the event of Conversion, the company shall have 60 days from the date the loss is reported to investigate the claim and attempt to locate the borrower, any co-maker, or the covered property.
OPTIONAL LENDER COVERAGE AND PREMIUMS
Limits of liability for each coverage may be increased or decreased. Any increase or decrease shall be accompanied by a proportionate increase or decrease in the rate applicable to that coverage. For complete definitions on the optional coverage, please refer to the Lender's Collateral Protection Blanket Policy.
We shall pay for any direct loss you may sustain by being prevented from obtaining possession, retaining the proceeds or enforcing your rights on property represented by an instrument solely because you have inadvertently, unintentionally, through error or omission, or lack of knowledge, not recorded or filed the instrument properly.
REPOSSESSED COLLATERAL COVERAGE
We agree to indemnify you against loss to repossessed collateral provided the loss occurs within 120 days after the date of repossession and the collateral was in your care and custody at the time of loss.
REPOSSESSION EXPENSE REIMBURSEMENT
In the event you repossess an eligible collateral and a Notice of Insurance is in force on the repossessed collateral at the time of repossession, we will reimburse you for the expense up to the limit of coverage to take possession of the collateral including storage, towing and a mechanics lien.
CONVERSION, SECRETION & CONFISCATION
We will provide coverage for any direct loss sustained by you due to conversion, secretion, or confiscation of the insured collateral described on an individual Notice of Insurance. For any loss caused by conversion or secretion of the insured collateral, we shall have sixty (60) days from the date of loss to investigate the claim and attempt to locate the collateral. If we locate the collateral and notify you of its location, you must exercise your right to repossess.
AUTOMATIC COVERAGE ENDORSEMENT
In the event that the insurance on property of the eligible credit transaction is not procured because of an inadvertent error or oversight, we shall provide coverage according to the terms and conditions of the policy.
WORLDWIDE PROTECTION COVERAGE
Provides limited coverage to property within the territory of any country in the world, which has an established international agreement with the United States.
PREMIUM DEFICIENCY ENDORSEMENT
Provided there has not been a loss and you have an earned to incurred loss ratio of 50% or less during the experience period and all of the property under the instrument is repossessed and you still have an outstanding balance after the sale of the property and all reasonable collection efforts have been expended, we will reimburse you up to the amount of earned premium.
Mortgage Protection Plan
Description of Coverage
The mortgage protection policy covers all types of real estate loans including Residential and Commercial Properties. The policy provides up to $1,000,000 Guaranteed Issue Coverage per Location. The coverage extended is All-Risk Protection excluding the perils of Earthquake and Flood and is subject to all policy terms and conditions.
Residential Risks are rated at $1.00/$100.00/Year. Commercial Risks are rated at $1.50/$100.00/Year Occupied and $3.00/$100.00/Year Vacant. Mobile Homes secured by a Deed of Trust may also be insured under this policy at $3.00/$100.00/Year.
Automatic Coverage - Errors & Omissions: Under the errors and omissions endorsement, Southwest Business Corporation will generate an individual policy on those members whose Real Property has been damaged and there is no evidence of insurance covering your interests.
Foreclosure & Demolition Expense: In the event of a total loss, additional coverage is provided for Demolition Expenses of up to 10% of the Insured Value.
Replacement Cost Settlement: Losses to Residential Properties are settled on a Replacement rather than Actual Cash Value basis. This is subject to the property being insured at 80% to Value and completion of repairs to the damaged property.
Flood Protection Plan
Description of Coverage
The peril of Flood is covered under the Mortgage Protection Plan Policy (MPPP) underwritten through the National Flood Insurance Plan (NFIP). The rates, limits, coverage terms and conditions are as mandated under the NFIP and 100% backed by the Federal Government. We will provide coverage using the Hartford Fire Insurance Company, a Write Your Own (WYO) insurer. Coverage is extended to both Residential and Commercial Buildings in Special Flood Hazard Areas (SFHA). Members may secure optional Retail Flood Insurance from us at their option.
Both regular and life of the loan determinations are available. Check with us for current pricing.