VSI

What is VSI?

• Have you ever repossessed a car or pickup truck that had been wrecked and then discovered your borrower had no insurance?
  
  
• Have you ever been unable to repossess due to a failure to file the lien entry form or because a bankruptcy court disagreed regarding the perfection of your security interest?
  
  
• Have you ever had your collateral confiscated or had a borrower "skip" with your collateral?
  
  
• Have you ever had a repossessed vehicle stored on your lot damaged in a storm, stolen or vandalized?

Chances are you've experienced one or maybe all of the above resulting in a loss on the loan. However, with our Vendors Single Interest program, you will be protected in situations like these and more.

VSI insures only the lenders interest, there is no coverage for the borrower, hence the "single interest." Coverage is extended after repossession of the collateral.

There are four basic coverages for V.S.I.
PHYSICAL DAMAGE: includes loss by fire, theft, wind, hail, malicious mischief, vandalism and collision.

NON-FILING: protects the lender if legally prevented from repossession, usually due to inability to prove the lien is perfected or through a problem arising from bankruptcy.

SKIP & CONFISCATION: To qualify as a skip, borrower, collateral and any co-maker must be missing and no recourse available. Lender must make a professional attempt to repossess before the account is 90 days past due and must notify CIA of claim within 90 days of date of loss. Date of loss is date the first delinquency occurs. Detailed documentation of collection efforts must be received prior to acceptance of skip claim. CONFISCATION coverages insures the lender in the event the vehicle is conficscated by a Public Officer or Office and subsequently sold with no regard for the lien.

LOT COVERAGE: covers your collateral for a period of 60 days from the date of repossession for loss due to physical damage. This coverage does not extend to a third party.

Rates
Each lender will be individually underwritten. Rates vary according to loss experience, portfolio mix (ratio of direct to indirect loans) and volume of lending. Click on this link for an application. Simply fill out the form, submit to us and we will respond with a quote for your V.S.I. coverage.

Claims
As managing general agent with draft authority, we are able to handle every aspect of your claim. First, we receive your loss report, either by phone or fax. We have no form to fill out, just give us a few details, send the documentation requested and we will take it from there.

Eligible Collateral
Autos, vans and trucks
Boats, motors and trailers
Motorcycles
Motor Homes and Recreational Vehicles
Personal property (furniture, appliances, computers, etc.)
Farm machinery
Mobile Homes (not to exceed 60 months original term)

Endorsements
We have several standard endorsements:

Waiver of Subrogation - This endorsement allows lender to exclude the V.S.I. premium from the finance charge and complies with Regulation Z.

Assumption of Coverage - This endorsement extends coverage for your present loan portfolio, even if those premiums were paid to another insurer.

Single/Irregular Pay Instruments - This endorsement extends coverage to loans with other than regular installment payments.
Administration
V.S.I. reporting forms are submitted on a monthly basis accompanied by a check for that month's premium. Minimal information is required, no names or loan numbers, just total of loans with the V.S.I. premium added. It couldn't be any easier.

If you would like more detailed information, please contact our Sales Dept.