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Just the Facts
Purpose:
To
protect the credit union against exposed perils often associated
with lending. VSI coverage is triggered when a member defaults
on a loan and the credit union must repossess the collateral.
VSI eliminates the need for tracking insurance renewals and
force-placing insurance.
Coverage:
•
Physical Damage: Provides coverage when it is determined
upon repossession that your collateral has been damaged and there
is no other valid and collectible insurance. NOTE: A claim should
be submitted as soon as you are aware of a loss.
•
Combined Expense: Provides coverage when expenses are incurred
to repossess collateral (such as mechanic’s lien, repossession
fee, disposal, or storage expenses). Coverage will be provided
up to the limit per loss if a deficit results from these expenses
after sale of the collateral, provided there is a payable physical
damage claim.
•
Loss Settlement without Actual Cash Value: Deletes the
actual cash value of the property as a claims settlement option.
To be eligible for this option, the credit union cannot lend more
than the chosen percentage of the collateral value at the time
of the loan or refinance.
•
Non-filing of Instruments: Provides coverage for losses
due to credit union employee error in preparing, filing, or maintaining
any instrument used to secure the credit union’s interest in collateral
pledged on a loan.
•
Repossessed Property: Provides coverage when collateral
is repossessed. Coverage is provided during and after repossession
for comprehensive and collision losses. There is no coverage
for losses more than 120 days from the date of repossession.
•
Blanket Confiscation, Conversion, and Secretion: Provides
coverage when the collateral is unable to be located. Claims
should be submitted when location fails with an outside repossession
agent. If the collateral is located, the credit union must take
whatever legal measures necessary to repossess the vehicle before
claim is payable.
Collateral
Covered:
•
Automobiles, Trucks
•
Motorcycles
•
Recreation Vehicles
•
Watercraft
•
Farm Equipment
•
Mobile Homes
Underwritten by:
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