Collateral protection insurance (original) (raw)
Collateral Protection Insurance, or CPI, insures property held as collateral for loans made by lending institutions. CPI, also known as force-placed insurance and lender placed insurance, may be classified as single-interest insurance if it protects the interest of the lender, a single party, or as dual-interest insurance coverage if it protects the interest of both the lender and the borrower.
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| dbo:abstract | Collateral Protection Insurance, or CPI, insures property held as collateral for loans made by lending institutions. CPI, also known as force-placed insurance and lender placed insurance, may be classified as single-interest insurance if it protects the interest of the lender, a single party, or as dual-interest insurance coverage if it protects the interest of both the lender and the borrower. Upon signing a loan agreement, the borrower typically agrees to purchase and maintain insurance (that must include comprehensive and collision coverage for automobiles, and hazard, flood, and wind coverage for homes), and list the lending institution as the lienholder. If the borrower fails to purchase such coverage, the lender is left vulnerable to losses, and the lender turns to a CPI provider to protect its interests against loss. Lenders purchase CPI in order to manage their risk of loss by transferring the risk to an insurance company. Unlike other forms of insurance available to lenders, such as blanket insurance that impacts borrowers that have already purchased insurance, CPI affects only uninsured borrowers or lender-owned collaterals, such as auto repossession and home foreclosure. Additionally, depending upon the structure of the CPI policy chosen by the lender, the uninsured borrower may also be protected in several ways. For instance, a policy may provide that if collateral is damaged, it can be repaired and retained by the borrower. If the collateral is damaged beyond repair, CPI insurance can pay off the loan. (en) |
| dbo:wikiPageExternalLink | http://www.wellsfargocpisettlement.com/en |
| dbo:wikiPageID | 17425373 (xsd:integer) |
| dbo:wikiPageLength | 10013 (xsd:nonNegativeInteger) |
| dbo:wikiPageRevisionID | 1106153357 (xsd:integer) |
| dbo:wikiPageWikiLink | dbr:QBE_Insurance dbr:Repossession dbr:Freddie_Mac dbr:Fannie_Mae dbr:Financial_crisis_of_2007–2008 dbr:Foreclosure dbr:Assurant dbc:Types_of_insurance dbr:Collateral_(finance) dbr:FHFA |
| dbp:wikiPageUsesTemplate | dbt:Authority_control dbt:Reflist dbt:Unreferenced_section |
| dcterms:subject | dbc:Types_of_insurance |
| rdf:type | owl:Thing |
| rdfs:comment | Collateral Protection Insurance, or CPI, insures property held as collateral for loans made by lending institutions. CPI, also known as force-placed insurance and lender placed insurance, may be classified as single-interest insurance if it protects the interest of the lender, a single party, or as dual-interest insurance coverage if it protects the interest of both the lender and the borrower. (en) |
| rdfs:label | Collateral protection insurance (en) |
| owl:sameAs | freebase:Collateral protection insurance wikidata:Collateral protection insurance https://global.dbpedia.org/id/4hvFN |
| prov:wasDerivedFrom | wikipedia-en:Collateral_protection_insurance?oldid=1106153357&ns=0 |
| foaf:isPrimaryTopicOf | wikipedia-en:Collateral_protection_insurance |
| is dbo:product of | dbr:State_National_Companies |
| is dbo:wikiPageRedirects of | dbr:Force-placed_insurance dbr:Lender-placed_insurance |
| is dbo:wikiPageWikiLink of | dbr:QBE_Insurance dbr:Insurance dbr:Intangible_asset_finance dbr:State_National_Companies dbr:Force-placed_insurance dbr:Home_insurance dbr:Lender-placed_insurance |
| is foaf:primaryTopic of | wikipedia-en:Collateral_protection_insurance |