As a lender, you’re helping make dreams come true, every day. You helped John buy the boat he uses to teach his children how to fish. You loaned Aliyah the funds to buy a camper for her and her family to take a cross-country vacation. And you provided the loan that Carlos used to buy his mom a new car. Mitigating your risk can help you continue making dreams become a reality.
Collateral protection insurance (CPI) is a risk management tool available to mitigate losses associated with uninsured loan collateral. In the event a borrower doesn’t maintain adequate comprehensive and collision coverage, CPI transfers the risk to Securian Financial.
Flexible program options include:
Blanket vendor single interest
Blanket vendor single interest (BVSI) protects your loan portfolio from the uninsured. If an auto is repossessed and there is damage with no insurance coverage, this policy will pay for that damage within the limits of coverage.
Protects against uninsured: autos, mobile homes, motorcycles, watercraft, RVs, personal property, machine and equipment and other eligible types of collateral.
Non-file insurance
Non-file insurance (NFI) protects a lender in the event they suffer a loss as a result of not filing a lien against the collateral with government authorities. NFI is placed only on non-purchase money loans or those where the property used as collateral is not purchased with proceeds of the loan, typically furniture and appliances.
Example: Your borrower gets a personal loan for $1,500 because he needs to pay a medical bill and he uses his big-screen TV as collateral. You have a “non-purchase money security interest” in the TV because it was not purchased with proceeds from the loan.
NFI pays a benefit in the event of default where the lender:
Loss must be solely as a result of the lender not filing its security interest.
DOFU 10-2023
3174618
