State National Provides New Online Resources for Lenders

Fort Worth, TX – July 24, 2008 - State National Companies (SNC) has launched a redesigned and retooled website which incorporates a new Lender Services Resource section.

This section provides a wealth of information related to Collateral Protection Insurance (CPI), including white papers and case studies that deliver valuable and timely knowledge to lenders who want to better manage their current CPI program or to put a new program in place.

"We are seeing an increased interest in CPI, particularly in light of today's uncertain economy," says John Pearson, executive vice president and national sales manager at State National. “Lenders need to be equipped with the best, most current information about CPI and its complexities in order to make the best decisions for their business and their borrowers."

CPI, which typically covers collateral for vehicle loans, has proven to be the most effective and fairest means of protecting lenders against risk of loss to their loan portfolio.

When borrowers take out vehicle loans, their loan agreements typically require that they maintain physical damage insurance to cover the loan collateral. Unfortunately, not all borrowers will fulfill this agreement, either never purchasing insurance or letting their coverage lapse. This puts a strain on lenders as well as borrowers who do maintain standard insurance. CPI covers these uninsured vehicles, which protects the lenders’ assets and encourages borrowers to obtain required insurance coverage.

"CPI is a complex product requiring careful administration. Having an online library of topics at their fingertips will enable lenders to understand their CPI programs and administer them effectively, and will also provide valuable insight for their decision-making process," says Pearson.

"As the only insurer in the nation specializing in CPI, State National is pleased to share our expertise and make this information freely available to both credit unions and other lenders," Pearson adds.