Portfolio Protection
Provides LSI Coverage to Protect All Loans and Leases Against Many Types of Perils and Exposures.Lenders Single Interest (LSI) insurance coverage protects all loans and or leases against the following:
- Loss due to direct, sudden and accidental damage to the vehicle by any external cause if the Borrower’s physical damage insurance has lapsed and is discovered once the Insured repossesses the vehicle.
- Loss due to the vehicle being stolen from the Borrower, where the Borrower’s insurance has lapsed, if the vehicle can not located within (30) days following the filing of a police report
- Physical damage to the repossessed vehicle during the act of repossession, transport and storage. Storage coverage is for the lesser of: 1.) ninety (90) days; 2.) vehicle sold; 3.) or claim is paid
- $500 Deductible on the perils and exposures listed in this section
Additional Coverage Provided Under This Policy With No Deductible
CONFISCATION AND SEIZURE: Policy will pay for any direct loss incurred by the insured by reason of confiscation or seizure of vehicle by any police office or public official; IRS, DEA, FBI, etc.
SKIP COVERAGE: Policy will pay for any direct loss incurred by the insured as a result of the inability to locate the Borrower, any Co-Borrower or the vehicle.
WAIVER OF SUBROGATION: Insurance Company will not take legal action against Borrower to collect any claim that has been paid under this policy.
TERRORISM COVERAGE: Policy provides coverage for any act of terrorism as defined in the “U.S. Terrorism Risk Insurance Act of 2002”.
Additionally, PPP has created a unique Benefit Plan Package specifically designed for the Borrowers and Lessees of the lenders and leasing companies that are insured under the CAP LSI program. The PPP Benefit Program is provided to every Borrower’s and Lessee’s vehicle where the Loan or Lease is active with an insured entity under this program. The only items needed to validate coverage in the event of a claim is the Vehicle Identification Number (VIN) of the vehicle with the loan or lease and their name. A partial list of the benefits of this program is as follows:
- Towing Assistance
- Flat Tire Assistance
- Emergency Fluid Delivery
- Lock Out Assistance
- Battery Service
- Rental Care Discount
- Hotel Discount Program
- Map and Trip Itinerary Service
Important Policy Considerations
- Evidence of Physical Damage Insurance coverage on the Vehicle Sale Date is the only requirement for coverage commencement.
- Coverage for New or New and Existing Loan Portfolios with unique Premium Payment Plan options designed for each insured.
- No insurance tracking required
- Many insurers no longer provide Notice of Cancellation (NOC) letters to lien holders.
- Many states have no statutes requiring NOC letters to lien holders.