Budget cutting item: CFO wants to stop all tracking of insurance coverage on vehicle loans. Wants to eliminate a full-time position and the vendor doing the tracking.

Other than safety and soundness issues, are there any regulations preventing us from stopping the tracking?

Are there any other FI's out there that have stopped this practice?

We haven't tracked vehicle insurance for years. We verify at inception and that's it.

PS- your tagline just made me homesick and hungry!

Many banks do as Cowboy Fan's bank. However - most have purchased a blanket insurance policy that covers any losses that result, which is much cheaper than the overhead to do the on-going tracking.

Where would I find the company issuing the blanket insurance policies? I would love not having to track insurance everyday.

Yeah, Cowboy Fan, I never realized how spoiled I was with all those wonderful delicious foods until I moved to Kansas last year. (I forgot to add REAL(NY style)Pizza to my signature.) All Kansas has is BBQ and Mexican; it just doesn't compare!

Thank you all for replying to my question.

You need to speak with the firm that provides your bank's insurance policies, E&O, etc. They should be able to arrange this type of insurance. It is very common and has been around for many years.

Does the "blanket" then replace VSI?

Previous question from me. Sorry, forgot to login.

It more or less becomes your VSI coverage. However, you need to talk with the agent/carrier to be sure you understand what coverage has been written and how and what it covers.

Can any of these fees be passed on to the customer? We charge for VSI, but I would think that a $ figure to charge would be hard to quantify.

I'm from the midwest....What the heck is a tastycake?

The idea is that the blanket insurance coverage will save you the overhead related to all of the tracking. It pays for itself. No reason to pass the charge on to the customer.