Frequently Asked Questions
The following is a list of frequently asked insurance-related questions.
Your loan agreement with your financial institution requires you to maintain adequate Comprehensive and Collision or Hazard insurance coverage throughout the term of your loan.
After securing your loan, you should notify your insurance agent or company of the new collateral you purchased and request that the name of your financial institution be added as “Loss Payee” or “Lien Holder” on your policy. This allows us to be notified of any changes to your insurance coverage throughout the term of your loan.
You received this letter because of one or more of the following reasons:
· We have not received a copy of the insurance required by your loan.
· Your insurance has expired and we have not received a copy of your renewal policy.
· We have received notification from your insurance company that your policy was cancelled and we have not received a policy reinstatement or a replacement policy from your new insurance company.
· The policy information provided is unacceptable for one of more of the following reasons:
- Your policy does not include Comprehensive and Collision coverage.
- You sent us a copy of a “Liability I.D. Card” rather than a copy of the policy “Declarations Page”.
- Your Comprehensive and/or Collision deductibles are greater than the amount required by your loan agreement.
- You could have an “Excluded Driver” listed on your policy, which may not be acceptable.
- Your financial institution is not named as “Loss Payee” or “Lien Holder” on your policy.
Your dwelling coverage is less than your current outstanding
balance for your property.
- Your dwelling deductible is greater than the amount required by your financial institution.
There are a number of easy ways to provide the needed information:
· Complete the insurance information form at www.myloaninsurance.com and we will verify the insurance and update our records.
· Contact your insurance agent or insurance company and have them mail a copy of the necessary information to the address shown at the bottom of the letter you received.
· Contact your insurance agent or insurance company and ask them to fax the required information to the number shown on the letter you received.
Maintaining adequate insurance is a requirement of your loan agreement. You should immediately contact an insurance agent or company of your choice to purchase insurance. Keep in mind that your loan agreement requires comprehensive and collision coverage and/or adequate dwelling coverage, but you may wish to purchase additional coverages which may be required by state law. Remember to name your financial institution as “Loss Payee” or “Lien Holder” on your policy.
If you do not provide acceptable proof of insurance, your financial institution may purchase the necessary Collateral Protection Insurance. Your loan agreement allows them to add the cost of this insurance to your loan and to increase your loan payments to recover this cost.
Additionally, if insurance is purchased by your financial institution, it primarily protects their interest in your collateral. Any insurance your financial institution purchases will not provide you any form of liability coverage, which may be mandated by your state of residence. We strongly suggest that you purchase your own insurance.
Your loan agreement requires that you name the financial institution as “Loss Payee” or “Lien Holder” on your policy. This protects their interest in the collateral and ensures that they are notified of any change in your coverage throughout the term of the loan.
We will verify your information with the insurance company or agent, normally within two business days of receipt of the information. We will notify you by email regarding the outcome.
You will receive an immediate acknowledgement from our system when you submit your insurance information. In addition, we will notify you by email, within two business days, once we have completed our verification.
If a Collateral Protection Policy has previously been added by your financial institution and you subsequently provide acceptable proof of insurance, any applicable refund will be processed and sent to your financial institution to credit against premiums previously added to your loan balance. Refunds are normally processed within five business days.