1. If there is more than one piece of collateral on the note, do we charge each piece of collateral?
No. There is only one charge per note, regardless of how many pieces of collateral are listed.
2. What is the bank's responsibility in tracking he customer's primary insurance?
As condition #15 of the policy states, the financial institution must require all borrowers to obtain insurance on their collateral at the time the loan is made, and the borrower must agree to do this.
3. Our customer has wrecked their vehicle, but has not defaulted on their note. Can we file a claim under the VSI insurance?
No. As condition #16 of the policy states, the customer must default and the financial institution must suffer an impairment of interest before a claim can be filed.
4. Do I have to repossess the collateral in order to file a claim?
Yes. Before the financial institution can file a claim, they must legally repossess all listed collateral on the note and be in position to convey good title to the insurance company, if necessary.
5. How long does it take to process a claim?
All claims are handled, from start to finish, within our office. The single biggest delay, in claims processing, is the failure to receive all the necessary information, from the financial institution, when the claim is submitted.
If all necessary data is received in the beginning, the claim is assigned, that day, to either the appraiser or the skip tracer.
As respects a physical damage claim, the turn around time for the apraiser's report (which varies some depending on the geographical location) is seven (7) to ten (10) days, after which the information is verified and the draft is issued from our office.
As respects skip claims, when all required information is received, they are assigned to the investigator that same day. The policy provides for sixty (60) days location time. At the end of that period, if we fail to locate, the claim will be settled.
6. What is the definition of personal property?
Personal property is intended to include those items that can be identified by make, model, and serial number, at the same time of the loss, so that we can determine the actual cash value when necessary.
7. What is covered under machinery and equipment?
Machinery and equipment is intended to include, but is not limited to, such collateral as farm tractors and their equipment, mowers, landscaping equipment, portable mixers, bobcats, and similiar types, which are not licensed for road use.
8. How is my settlement determined on a damaged repossession?
We will pay the lesser of three options which include: (1) The Actual Cash Value (ACV), less salvage; (2) The net payoff (Gross balance less interest and carrying charges) not more than 90 days past due, less salvage; or (3) the estimate to repair. Note!: Only the ACV and balance are option for a skip.
9. What is GAP coverage?
This coverage applies when either a total loss occurs under Physical Damage (Coverage A), or in the case of a Skip (Coverage C), and the financial institution's net balance exceeds the ACV of the collateral. This coverage is limited to $5,000.00 per claim.
10. Do you offer a dividend plan?
No, we do not. Complete information and code interpretations are available from our office.
11. When there are two or more pieces of collateral, on a note, and only one vehicle has been damaged, can we file a claim on just the wrecked vehicle?
Yes you can, but all collateral listed on the note must be repossessed before any claim can be filed.
12. Are dealer loans covered?
Only if they are not covered under a separate full recourse agreement.
13. Is mechanical breakdown or damage covered?
Mechanical breakdown or damage is only covered when it directly results from an insured peril.
14. Although we've repossessed the vehicle, our customer still has primary insurance in force. Am I eligible to file a VSI claim?
Possibly, after the primary insurance is settled. We are excess coverage over any primary that can be collected, subject to policy limits.
15. Can we sell our car while awaiting a VSI payment?
We strongly discourage selling the collateral until we have settled your claim. If you do sell the collateral, before we can inspect the damage, your cliam could be jeopardized.
16. How do I know if I have a Skip claim?
The bank must be unable to locate the collateral, the borrower or any obligee of the note. Once it has been determined that the borrower has skipped, and is not merely delinquent, you have 180 days from the delinquency date to file a claim under Coverage C.
17, Is theft covered?
Yes, both total and partial thefts. Theft is considerd a covered loss under Coverage A.
18. What information do I need to send, in order to file a claim?
There is a checklist provided in the blue Executive notebook you receive with your policy. Simply consult the list to see what we require for the type of claim you with to file.
19. How long do I have, after repossessing a car, to file a claim with your office?
You have 90 days from the date of loss, (by definition), under Coverages A, B, and D.
20. What is the policy term and what term loans are eligible for coverage?
The policy term is from the effective date until cancellation. After cancellation, coverage ceases. This is a continuous contract with no fixed expiration date.
Loan terms in the basic policy include installment loans up to 60 months in length, or 62 months including extensions. This can be extended, if necessary, to accommodate most needs. Also, single payment (commercial) notes are eligible up to 12 months in length.
NOTE!: Of necessity, this is a brief synopsis of some of the more frequently asked questions, concerning our VSI program. Please feel free to contact us for a more in-depth explanation of coverage or procedure.