What is Texas collateral protection insurance?
(a) Collateral protection insurance is insurance coverage that: (1) is purchased by a creditor after the date of a credit agreement; (2) provides monetary protection against loss of or damage to the collateral or against liability arising out of the ownership or use of the collateral; and.
Is CPI the same as insurance?
Collateral Protection Insurance, or CPI, insures property for physical damage that is held as collateral for credit agreements, loans, and leases. CPI is also known as force-placed insurance or lender's placed insurance.
What is added CPI?
When CPI is placed on the loan, the credit union passes the premium charge on to the member by adding the premium to the loan principal, which increases the loan payments. If the member subsequently provides proof of insurance, a refund will be issued. A partial refund will be issued if there was a lapse in coverage.
Is CPI the same as insurance?
Collateral Protection Insurance, or CPI, insures property for physical damage that is held as collateral for credit agreements, loans, and leases. CPI is also known as force-placed insurance or lender's placed insurance.
What is Texas collateral protection insurance?
(a) Collateral protection insurance is insurance coverage that: (1) is purchased by a creditor after the date of a credit agreement; (2) provides monetary protection against loss of or damage to the collateral or against liability arising out of the ownership or use of the collateral; and.