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Acknowledge the Challenges, but Remain Encouraged

A message of hope and gratitude to State National’s steadfast employees and clients who share common values of doing good work and helping others.

Acknowledge the Challenges, but Remain Encouraged. A Seasonal Message of Gratitude From State National's President and CEO, Matt Freeman

We all know that the holiday season lends itself to feelings of joy and anticipation and thoughts of togetherness. For many this year, those thoughts and feelings will be competing with a sense of anxiety and sorrow and a fear of the unknown. It’s important that we acknowledge the challenges we have experienced throughout the year and will continue to face through the coming months, yet also remain encouraged and hopeful about the pending developments that are anticipated to meaningfully shift the trajectory of the pandemic for the better in 2021.

While I’m quite optimistic about the future, the current and ongoing strain is not lost on me as I struggle with how to best lead a company whose success dictates the livelihood of so many while balancing how to keep our State National family and clients safe and healthy. One theme in particular resonates with me as together we navigate these uncharted waters in search of our collective personal and professional success: gratitude.

Above all, our employees’ resilience and adaptability this year in particular have allowed us to create and maintain an admirable level of stability in the face of these unique circumstances. By enabling and empowering one another, State National continues to effectively serve our clients despite the many restrictions and impediments we have encountered this year. We are all part of an extraordinary team and I am grateful to each and every one of our State National teammates for their dedication to the company, our customers, and one another.

Our success is also due in large part to our clients and their many years of patronage and service. Through our partnerships, we continue to succeed and surpass our expectations even during these unprecedented times. Many thanks to all of our partners for their unceasing commitment and trust in State National.

While juggling the intricacies of the business, the unanticipated but necessary changes, and the health of our employees, it would be understandable that our commitments to our local communities would take a back seat. It could be expected that our drive to help others may shift to immediate family and friends given the current climate. Nonetheless, our employees showed up in a very big way, determined to volunteer their efforts regardless of personal challenges that may hit closer to home.

``The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands in times of challenge and controversy.``

Dr. Martin Luther King, Jr.

In an effort to support our local communities, our SNCares program provides frequent opportunities for our employees to give back through financial contributions and personal engagement. In spite of the pandemic, we were able to participate and accomplish much: our “Winter Clothing Drive” benefiting the Union Gospel Mission; our “Bake Sale” donation of $2,500 benefitting the American Heart Association; and our “Operation Back 2 School” event donating $1,400 in backpacks and school supplies to our local schools.

Additionally, in an effort to more directly help those most impacted by the pandemic, we partnered with the Tarrant Area Food Bank to support those in our community who are food insecure. Our team once again stepped up, driving contributions of over $65,000 to the worthy cause. Throughout this crisis, State National has also endeavored to do our part in protecting our local communities through blood drives and our SN “Stay Healthy Day,” which ensured access to seasonal flu vaccinations for all employees.

With much humility and admiration, I want to thank each and every one of our employees for remaining steadfast and acting as an ambassador of State National in both their work lives and in their communities. We are also fortunate to do business with so many other companies who share these values and are out in the world doing good works of their own and helping others affected by the events of this year. During times like these, we yearn to be inspired through acts of kindness and service and you have all proven to do just that. 

Matt Freeman
Matt Freeman
Matt Freeman, State National’s President and CEO, leads the teams that successfully operate each of the organization’s businesses and guides the corporate strategy that maximizes the potential of the company’s unique insurance platform. His professional background includes experience in the insurance, technology, and financial services arenas. He holds an MBA from Emory University, where he was a Dean’s Scholar, and a BA from the University of California, Los Angeles.

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The Difference Is in the Details: Secure Texting

State National’s Partnership With Solutions by Text Is a Secure Way To Reduce Borrower Noise    When was the last time you wrote or received an office memo? Or had stamps handy to mail a letter? Have you dialed the operator to make a phone call lately? Or eavesdropped on a party line? Some of you may have never experienced these “old school” methods of communication — and although each of these had their charms (eavesdropping on your neighbors over a party line was sometimes just as entertaining as watching drama unfold on General Hospital!) you should probably consider yourself lucky that those days are mostly behind us. Communication has evolved to become faster, easier, and far more convenient over the years, and here at State National we are no stranger to the incredible efficiencies technology has gifted us.     Whether business or personal, emails and texting have drastically altered how we connect with each other and share information. 89% of adults check emails daily and 98% of all text messages are read within three minutes! (When was the last time you checked yours?) Both are instant and can be read and responded to at the convenience of the recipient as opposed to interrupting them with a phone call, which many people report causes them a certain amount of anxiety nowadays. Both email and texting is where it’s at these days, and each have their particular strengths. While emails can provide a little more space to respond at leisure, texts create a sense of urgency. Receiving a communication from another channel also helps reassure borrowers of the authenticity and validity of the message by adding another touchpoint communicating what is needed.   Adding Email Notifications In 2016, State National implemented email notifications to borrowers as part of the notice cycle. This provided a quick and efficient way for borrowers to respond with their insurance information through the MyLoanInsurance.com website or by replying to the email with their insurance information. On average, we saw 23% of borrowers log into MyLoanInsurance.com from the email. Considering that 2% to 5% is considered a good click-through rate for email, this result was an immediate success.   Next, Text Messages Then, in 2019, State National added text messaging to the notice cadence to further increase ease and convenience for borrowers while also instilling an urgency to submit their insurance. Like our email notifications, these text messages have a secure link into the MyLoanInsurance.com website a recipient can effortlessly access from their smartphone — which, let’s be honest, is always inches from their fingertips at any given moment. So far, we are seeing an average of 18% of borrowers log into MyLoanInsurance.com from a text they’ve received and we expect that number to continue to climb. Overall, of those who log into MyLoanInsurance.com from the email or text, over 70% are submitting their insurance!     But Is it Secure? Of course, scams and phishing are unfortunately a reality and very prevalent in the world of emails and texting and, rightly so, have everyone on high alert. Let’s face it, receiving a text asking you to provide your insurance information may cause some hesitation, but then when you receive an email a few days later, you start to think it may be legit. Then you receive the notice in the mail. OK, the recipient thinks, now I know this is my financial institution trying to get ahold of me to get this information. We want your borrowers to feel at ease that their information is protected. That’s why we include your financial institution’s logos on the emails and on the secure MyLoanInsurance.com website. If you’re a client of State National or thinking of becoming one, putting the MyLoanInsurance.com website on your loan documents or even on your website can help reinforce the authenticity with your borrowers.   The Proof Is in the Results So how does all this translate to your CPI program? Well, we have found that clients who utilize our email and texting programs are experiencing an average penetration that is 34% less than before they added these enhancements to their program. In addition, the "flat cancel" rate (the percentage of certificate placements resulting in a full refund) has decreased as much as 11%. That means fewer unnecessary certificates placed and refunds processed — which translates to less work for your staff.   The Difference Is in the Details State National’s texting and email programs are completely free of charge and State National does all the heavy lifting for you. You simply provide us the email addresses and phone numbers associated with the loans and we’ll take it from there — only reaching out to borrowers we haven’t yet received insurance information from. Should one of your borrowers no longer want texts, they can easily reply STOP and they’ll immediately be opted out, with their opt-out immediately reported back to your financial institution. We’ve worked diligently with outside legal counsel and partnered with Solutions by Text, a compliance-first provider of enterprise texting solutions with a proven track record with the FCC, TCPA, FDCPA, CFPB, CTIA, and MMA to ensure that our program is fully compliant. And since there is no advertising of a product or service, our emails are exempt from the CAN-SPAM Act. We continue to closely monitor any and all regulations surrounding these programs so you can keep peace of mind.   See what our partner Solutions by Text has to say about financial services users and texting!   There’s no doubt that the borrowers we serve are enjoying the convenience — and responding to these more modern ways of both receiving and sharing information. Who knows what the future holds for even better communication techniques? Whatever it is, you can count on State National to be ahead of the pack in offering it to our clients!

How to Explain CPI to a Borrower, Part 2: Simple Answers to Common Borrower Questions

CPI expert and Sr. Client Executive Kathy St. Clair shares her insights on how to educate borrowers about CPI and what to say if a borrower has questions about a CPI certificate placed on their loan. In Part 1, Equipping Your Staff, she shared the value of informing borrowers proactively and the multitude of resources and support State National has available to assist you. If you do not know what CPI is, we recommend first reading What Is Collateral Protection Insurance (CPI)?   Borrower Questions Covered in This Article Will I receive a refund once I show proof of insurance? I submitted my insurance, but have not received a refund Can I keep CPI as my only car insurance if I want to? How do I rectify my insurance status? Can this insurance be refunded? While you can redirect a borrower to State National at any time to be helped by one of our friendly, highly trained team members, we want to share the answers to some common questions a borrower may ask so you and your staff feel prepared to answer anything.   Borrower Questions: "Will I receive a CPI refund once I show proof of insurance?" "If I go out and get insurance, can I be refunded for what I have paid for CPI so far?" "Will I still have to pay a premium on my loan each month once I show proof of insurance?" Once State National receives proof of insurance, a refund is quickly processed and sent back to your financial institution. If the borrower had adequate insurance for the time period in question, a full refund will be issued. There may be a charge for any verified lapses in coverage. How quickly we can issue a refund will depend on the agreed-upon process, such as ACH or manual check. The refund is then posted to the borrower’s loan. 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I may want to keep CPI because it is cheaper and more convenient than my previous insurance." "Can I keep CPI as my only car insurance if I want to?" Some of our CPI partners have shared that borrowers occasionally ask about keeping their CPI insurance instead of purchasing their own auto insurance. A borrower should understand that CPI is not an equal alternative to car insurance they can buy on their own. By educating a borrower on what CPI is, you can deter them from keeping CPI. CPI is meant to cover only the cost financed by you as a lender — it is intended to protect your loan portfolio, not the borrower. While CPI provides comprehensive and collision coverage on the automobile, it does not cover the driver. CPI will not assist a borrower in covering any damages to another individual’s property. Most states also require drivers to carry liability insurance in case an accident occurs and there is another party or property damage involved.   Not realizing the specifics of their insurance, a borrower with CPI coverage will sometimes return to their lender after an accident or other loss and ask for a copy of the policy. You can let them know that even though the insurance policy is mainly there to protect the lender, and excludes damages outside of their vehicle, if they have damage to their own car they can file a claim so that they will remain in good standing on their loan. If they are not delinquent by more than 45 days, we will accept a claim directly from the borrower to repair that collateral and get them back in the driver’s seat. Please encourage your borrowers to get and maintain their own insurance.     "How do I rectify my insurance status?" "Can this insurance be refunded?" 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Here are some additional resources to build your knowledge about CPI: Short State National Animated Company Explainer Video What Is Collateral Protection Insurance (CPI)? Understanding the Differences Between CPI, Blanket, and Self-Insurance Remember, your financial institution’s dedicated Client Executive is here to help you with any of your CPI questions or needs!   To read the first article in this SNC Spotlight series, visit Part 1, Equipping Your Staff  

How to Explain CPI to a Borrower, Part 1: Equipping Your Staff

At State National, we recognize that collateral protection insurance (CPI) is not a term every borrower knows. Here, CPI expert and Sr. Client Executive Kathy St. Clair shares her insights on how to educate borrowers about CPI and what to say if a borrower has questions about a CPI certificate placed on their loan. If you do not know what CPI is, we recommend first reading What Is Collateral Protection Insurance (CPI)?