collateral protection
Blanket Physical
Damage Coverage
Blanket Physical Damage Coverage is the easy, convenient way
Loss scenarios
to protect your loan portfolio and avoid the risk of unpredictable loan losses.
The following are examples of typical
loss scenarios where Blanket Physical
Damage Coverage will safeguard your
interest in collateral.
If you’re subject to losses due to comprehensive or collision damage to property
pledged as collateral on a loan, Blanket Physical Damage Coverage protects your
interest in that collateral.
What’s Covered
This coverage protects your interest (not your borrower’s equity) in collateral that is
repossessed, found to be damaged, and no valid/collectible physical damage insurance is
in force at the time of damage.
Blanket Physical Damage covers motorized vehicles and transportable trailers, such
as autos, semi trucks, trailers, ATVs, snowmobiles, watercraft and their trailers, mobile
homes, and farm vehicles and their trailing implements.
Available Supporting Coverages*
• Mechanic’s Lien
• Repossession Fee & Disposal Expense
• Storage Expense
• Blanket Confiscation, Conversion & Embezzlement
• Blanket Confiscation, Conversion & Secretion
• Loss Settlement without Actual Cash Value
• Non-Filing of Instruments
• Repossessed Property
*Subject to underwriting approval.
• A borrower whose personal auto policy
has recently expired is hit by another
uninsured driver, and the car is a total
loss. As a result, the borrower defaults
on the loan.
• You discover that a vehicle you’re
trying to repossess from a borrower
who never obtained physical damage
insurance was actually stolen.
collateral protection
Benefits
• No notices sent to borrowers
• No force-placed insurance on members’ loans
• No insurance tracking (appropriate risk management measures are recommended
to control losses)
• No individual certificate placement
• Minimal investment in staff time and systems management
Payment Options
• Annual-Premium Option calculates premiums annually based on your loan portfolio.
You pay either monthly or annually.
• Single-Pay Option changes the rating basis to a rate per new loan. If your state allows,
you may consider passing along the premium to the borrower or increasing the interest
rate on the loan. If you desire to pass on the cost of the blanket single-pay premium to
your borrower through insurance or application fees, etc., it is required that you consult
with your legal counsel to ensure your state allows this practice as well as to get the
proper disclosure language.
Customized Coverage
• Fully customizable to meet your needs
• Hundreds of options let you tailor your program to your risk exposure
• Many limits and deductibles to choose from
• Risk management guidelines help you manage your premium cost.
Frequently Asked Questions
Q.What conditions must be met before a potential loss is covered under this policy?
A.There must be comprehensive or collision damage to the vehicle with no valid or
collectible insurance in force. The loan must be in default (no payment to principal
for at least 90 days) and you must repossess the collateral.
Q.Can I still file a claim if the collateral is damaged, but it has not been 90 days
since the last principal payment?
A.Yes. You may file a claim. We will set up the claim and start adjusting the loss.
However, any claim payment due cannot be made until after 90 days with no
payment to principal.
For more information about Blanket Physical Damage Coverage, or to request additional
information about our comprehensive suite of Collateral Protection products, contact
your CUNA Mutual Group Sales Executive at 800.356.2644.
CUNA Mutual Group is a leading provider
of financial services to credit unions,
their members, and valued customers
worldwide. With more than 75 years of
market commitment, CUNA Mutual
Group’s vision is unwavering: to be a
trusted business partner who delivers
service excellence with customer-focused,
best-in-class products and market-driven
innovation.
Visit www.cunamutual.com or call
800.356.2644 for more information.
P.O. Box 391
5910 Mineral Point Road
Madison, WI 53701-0391
800.356.2644
www.cunamutual.com
CUMIS Insurance Society, Inc. underwrites all coverages and endorsements available through the Collateral Protection Blanket
Physical Damage program. Product availability and features may vary by jurisdiction and are subject to actual policy language.
CP-1111-A129 ©CUNA Mutual Group