1. Why was I sent this letter; I have physical damage insurance covering the collateral?                  

•        We may not be shown as the loss payee / lienholder on the policy; therefore, we did not receive a copy.
•        Your agent may have our name and address incorrect.
•        Your current insurance might be liability only, without physical damage coverage.
•        Your current insurance may have expired or cancelled.

2. If I do not have physical damage coverage what do I need to do?

• Contact an agent of your choice and tell him you need physical damage coverage.  Be sure you tell him that we are the loss payee / lienholder. You may also want to check with your lender to see if there are any specific requirements with regard to insurance.

3. Why do I have to have physical damage coverage?

• Our loan agreement with you requires that you maintain physical damage insurance throughout the term of your loan to protect our financial interest in the collateral.

4. What will you do if I do not maintain the proper insurance?

• We have in our loan agreement with you the option to purchase insurance to protect our interest.  The insurance we purchase may be much more expensive than insurance you may be able to purchase.  If we choose to purchase the insurance we may charge the premium cost to your loan balance.

• The insurance we purchase will cover our interest in the collateral only, does not provide you any protection, does not provide any liability insurance, and does not fulfill any State financial responsibility laws.