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#1686522 - 04/06/12 03:41 PM Insurance Tracking
Bankster Offline
Diamond Poster
Joined: Apr 2004
Posts: 1,181
Yinzerville, PA
I have a poll question here. We are trying to get an indea of what other Banks are doing concerning insurance tracking for commercial loans. Is there a dollar amount at which you stop tracking insurance for a customer? Currently, if a loan pays below $50,000, we stop tracking insurance coverage. Many feel this is too low, and we were hoping to find out what other banks are doing. Thanks for your help.

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#1686525 - 04/06/12 03:45 PM Re: Insurance Tracking Bankster
HRH Okie Banker Offline
Power Poster
Joined: Jan 2003
Posts: 3,070
Oklahoma
Our cutoff is $25k. We do not track insurance on any new loan or once a loan has paid down under $25k.
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#1686558 - 04/06/12 04:31 PM Re: Insurance Tracking HRH Okie Banker
Bankster Offline
Diamond Poster
Joined: Apr 2004
Posts: 1,181
Yinzerville, PA
Can you let me know what size Bank you are as well. Not sure if that matters, but I'm curious. Thanks

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#1686653 - 04/06/12 06:52 PM Re: Insurance Tracking Bankster
HRH Okie Banker Offline
Power Poster
Joined: Jan 2003
Posts: 3,070
Oklahoma
$475 million. 7 branches.
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Just working here until I get my letter from Hogwarts.

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#1686883 - 04/09/12 03:11 PM Re: Insurance Tracking Bankster
Always In Training Offline
Diamond Poster
Joined: Jul 2006
Posts: 1,111
Where the Green Grass Grows
Our cutoff (it's in our loan policy) is $3k for any loan commercial or consumer not cash secured. We have 7 branches and are $121 million in assets.

I guess its all in how much risk you are willing to take; how much risk you are willing to let your customer take? We have a few that we are willing to have a higher threshold for potential loss, based on the strength of the borrower - but that is rare for us.

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#1686965 - 04/09/12 05:31 PM Re: Insurance Tracking Bankster
WI Banker Offline
Gold Star
Joined: Dec 2006
Posts: 253
You should be familiar with what your blanket policy covers before deciding what to track or not track.

For example, if your blanket policy covers commercial real estate up to $1,000,000 with certain requirements (probably that the loan documents must require insurance and proof of coverage with bank listed as mortgagee prior to closing), then there is no reason to track insurance on those loans.

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#1687180 - 04/10/12 11:48 AM Re: Insurance Tracking WI Banker
Bankster Offline
Diamond Poster
Joined: Apr 2004
Posts: 1,181
Yinzerville, PA
Thanks everyone for your feedback. I will have to look into our Bank's insurance coverage.

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