SNC Spotlight

Insurance can be complex. Turn to our blog for up-to-date, relevant content to help you make the best decisions for your financial institution. With expert knowledge from seasoned industry professionals, we simplify insurance topics so you can get back to business.
All Posts

State National GAP – Undeniably Better

State National’s Guaranteed Asset Protection (GAP) is needed now more than ever. Why? Director of Client Services Francine Gagliano shares how without GAP protecting collateralized loans, borrowers are still responsible for any deficiency balance in the event of a total loss. Gagliano shares how a high-quality GAP program protects these borrowers and also protects financial institutions from charge-offs.

As summer winds to a close and school is back in session — whether that be virtual, face-to-face, or some combination of both — we are all adjusting to the new normal thrust upon us by this anything-but-normal year. Across all industries, employees are beginning to return to the workplace and, consequently, the pent-up demand for new car purchases is manifesting itself in an increase in loan volumes.

Auto lenders have long recognized the value in protecting their collateralized loans with Guaranteed Asset Protection (GAP). However, not all GAP Programs are created equal. This may be an opportune time to reevaluate your GAP program and consider whether a change would be in the best interest of your credit union and members.

”Why GAP Now?”

GAP protects members for the difference between their primary insurer’s claim payment, settled using the current ACV of the vehicle, and their outstanding loan balance on the date of loss. Without GAP protecting the collateralized loan, members would still be responsible for this deficiency balance. Over the past few years, we have witnessed primary insurance carriers finding more and more creative ways to limit their settlements, thereby increasing borrower deficiency balances. At a time when many U.S. households have been impacted by quarantine, stay-at-home orders, or unemployment, having to potentially pay thousands of dollars on a loan where the collateral has been totaled or stolen may feel like yet another punch in the gut. Will this cause an increase in members who elect to just walk away from their loan? Time will tell — but with GAP protecting the loan, members (and your bottom line) are protected from loss.

”Why State National GAP?”

State National underwrites, offers for sale, and administers its own GAP product. Functioning in all three capacities means increased product and systems flexibility as well as lower costs to our lender partners due to not having to pay agent costs. 2020 marks our 20th year offering the State National GAP product and brings a renewed focus on our product portfolio of coverages. The following are just a few of the program features* available for a customizable product that will best meet the needs of your credit union and members.

  • Auto Deductible Reimbursement – Provides reimbursement of unlimited primary carrier physical damage deductibles for up to four household vehicles, as long as one is protected by GAP.
  • GAP Plus – Provides members with a $1,000 credit toward the purchase of a replacement vehicle when financed with your credit union.
  • Monroney Labels – Ensures you are lending in compliance with your underwriting guidelines by obtaining a copy of the collateral’s Monroney window sticker. The label can be obtained even when GAP is not sold on the associated loan.
  • Skip-a-Pays – Protects against a set number of skipped or extended payments included in the loan balance on the date of loss.

Our in-house proprietary platform, InsurTrak, is upgraded several times throughout the year to ensure we are providing a system that is easy for your staff to use while saving them precious time administering your GAP program. Sales, program administration, and claims submissions are all managed within InsurTrak.

And, speaking of claims, how many other GAP providers can say they settle claims in an average of two business days with minimal or no supporting documentation required? At a time when borrowers are more financially challenged than ever, doesn’t it make sense to partner with a GAP provider that puts them back on their feet as quickly as possible?

*Available features may vary by state.

 

Contact us today if you would like to receive more information about our GAP product.

Francine Gagliano, State National Director of Client Services
817-265-2000 x1247 or fgagliano@statenational.com

Francine Gagliano
Francine Gagliano
State National Director of Client Services Francine Gagliano leads our Client Executive Group in the Central Region to facilitate client satisfaction and retention while also managing our GAP product. Ms. Gagliano currently serves as the 2021 Chair of the State National Women’s Network, which has a mission of creating a community of aspiring female leaders at all levels within the organization who support one another’s pursuit of excellence.

Related Posts

Celebrating Our Partnership With Filene!

Innovative Research From Renowned “Think and Do” Tank Drives Real-World Results for Credit Unions With service as a core value, State National not only puts maximum effort into providing the best portfolio protection anywhere, but we also actively look for ways to help move the industry needle and be a part of a larger mission. This includes actively seeking to expose our clients to opportunities with leading organizations that explore innovative, growth-oriented ideas. What Matters to You Matters to Us The renowned research firm Filene is a credit union and consumer finance think tank headquartered in Madison, Wisconsin. As an Inner Circle member and research sponsor, we provide support for their mission to connect credit unions with insights and innovations to change people’s lives. Their research ventures connect credit unions with the most impactful technology and drive forward-thinking business decisions. Through investing in organizations like Filene, State National further supports the credit union mission and helps our partners benefit from the latest insights into solutions to their industry's unique challenges. This partnership also gives us access to original research to better focus future advancements and technology innovations on collateral protection insurance (CPI) program improvements for our credit union partners. Keep Good Company At the start of 2020, State National joined forces with Filene by sponsoring their Center of Excellence for Emerging Technology, working with their industry experts to explore the future of digital financial services. This year, we are proud to also provide support for Filene’s new CoE, the Center of Excellence for Innovation & Incubation, which helps credit unions explore solutions to assist them in remaining adaptive and nimble as member and community needs continue to shift. Filene’s Centers of Excellence are identified based on the needs shared by hundreds of credit unions and created to empower them with the data they need to make decisions that will best serve their missions now and in the future. Filene's Center of Excellence of Innovation & Incubation — A Milestone Worth Celebrating All of Filene's Centers of Excellence are doing life-changing work to help credit unions — and their members — thrive. As a sponsor of the Center of Excellence for Innovation & Incubation and the Center of Excellence for Emerging Technology, we could not be prouder to support the amazing work Filene is doing to help credit unions succeed and to advance the credit union mission. We look forward to seeing these dedicated scholars and credit union advocates as they move into their second year of investigating ways to create, implement, and measure innovation in credit unions, identifying opportunities for credit unions to differentiate with innovation, and building a playbook of effective and consumer-friendly social innovation approaches for the future of all financial services! Check Out These Guest Posts From Filene Experts: Relationship Banking in a Digital Age Credit Union Digital Transformation in the Age of COVID – 19

10 Advantages of Partnering With SNC for CPI

There's everyone else — and then there's State National  

To Improve Is To Change

Using Change To Accelerate Innovation and Drive Success