CPI Online Enrollment Form


In accordance with the Retail Finance/Lease Installment Agreement, we have the right to require that you obtain and provide evidence of physical damage insurance naming CREDITOR (“CREDITOR”, “us” or “our) as loss payee (“required insurance”) and that the required insurance must be in force during the entire term of your finance/lease agreement. You may obtain required insurance from any licensed insurance agent and/or authorized insurance company of your choice. Failure to obtain the required insurance on your own or to keep it in force consistent with the above, constitutes a default under the finance/lease agreement, which gives CREDITOR the right to repossess your vehicle or to purchase insurance to protect our interest and to charge all costs of that insurance to you. If you do not provide evidence of required insurance, CREDITOR will allow you to satisfy the insurance requirement of the finance/lease agreement by insuring CREDITOR’s interest in your vehicle under our Creditor Placed Insurance (CPI) policy. The cost of this coverage will be charged to you.  Other important terms and conditions include the following:

CREDITOR is the Insured.  Our CPI policy provides single interest coverage and does not directly protect your interest in the same way as your own insurance would.  Claim payments made under our CPI policy will be made to CREDITOR and will be credited to your account balance or used to repair your vehicle at CREDITOR’s discretion.  In the event of a covered loss, our CPI policy will pay the lesser of (1) the cost to repair or replace your auto, (2) the actual cash value of your auto or (3) the Outstanding Net Balance of your account on the date of loss.  The Outstanding Net Balance means the outstanding account balance less the following: payments more than 90 days past due; unearned insurance, finance and other charges appropriate for the finance/lease contract; and charges and penalties added after the effective date of our CPI policy coverage.  The salvage value of the covered auto at the time of loss is deducted from any payment made under our CPI policy.  Also, a deductible (as shown below) applies to each loss.  The insured auto is described below.  In the event of a loss, notify CREDITOR.The premium that will be charged may be more expensive than required insurance purchased by you, and our CPI policy coverage may expire before your finance/lease contract is paid off. The Creditor Insured policy is not considered ‘written in connection’ with the credit transaction as defined in Reg. Z, Truth-in-Lending section 226.4(b)(7) and (8) Licensed insurance agents may receive compensation from part of the premium charged to your finance/lease contract for our CPI policy coverage. You may cancel coverage under our CPI policy at any time by purchasing your own required insurance from an agent of your choice.  The unearned portion of the premium, if any, will be refunded to you.

The CPI policy does not provide bodily injury or property damage liability insurance.  You must obtain this coverage on your own.

The rates for this insurance are not fixed or approved by the state board of insurance and does not provide you any protection, nor does it fulfill the requirement of any state “financial responsibility”, “no fault”, or “minimum liability insurance” laws, nor does it afford you any personal injury liability, property damage liability, uninsured or underinsured motorists or medical payment coverage and furthermore such insurance protects only the creditor and does not protect your equity in the vehicle described below.