Point of Sale Auto Insurance Program. Arceri & Associates, Inc Esplanade Avenue New Orleans, LA (504)

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1 Point of Sale Auto Program By Arceri & Associates, Inc Esplanade Avenue New Orleans, LA (504)

2 Weekly or Bi-Weekly Car Note Weekly Car Weekly Car Weekly Car Equals Success! You set up your customer with weekly or bi-weekly car payments to help them budget to coincide with their paycheck. This is a standard BHPH collection practice that reduces repossessions. Many customers don t have current auto insurance and come back with either the wrong coverage or incorrect lien holder or additional insured info. Your staff uses valuable time trying to close the deal. Saleman requires insurance before closing deal leaves lot to go buy a policy waits 1- hour in agent's office comes back with proof of insurance Vehicle is finally delivered after delays Month to Month Monthly Monthly Equals Failure! does not budget monthly for their auto insurance premium and as a result over 50% of repos are related to lapsed or cancelled insurance.

3 Rent Monthly Utilities Food Monthly Car Weekly Car Note Partying BHPH, LHPH and RTO s don t budget monthly for Auto. Gasoline The example above cost the dealer $10,000 a year (i.e. repo fees, repairs, detailing etc.) because of insurance cancellations. The dealer also suffers another $7,500 in weekly loss revenues.

4 Without Point of Sale Finance Vehicle Lapse Repossess Vehicle Repair & Detail Vehicle Loss Revenue With Point of Sale Finance Vehicle Include POS Collect Weekly & Bi-weekly Eliminate Lapse Notices Increase Revenues What is the available Point of Sale Options? Plan #1 Full Coverage One Carrier Plan #2 -Blanket Creditor Place (Self-insured program)

5 Plan #1 Full Coverage One Carrier s can receive a policy which includes liability, comprehensive and collision with one insurance carrier. Quoting and placing of policies includes assisting the customer with data entry into an online comparative rater to receive insurance quotes. How much can you earn? Arceri & Associates, Inc. agrees to pay your dealership a $40 processing fee per policy to cover administration of this program. We recommend that you use ½ of the administration fee or $20 to pay the salary of the Full-time employee. The administration fee is earned every 6 months when the auto insurance policy renews. With over 100 vehicles insured in the Point of Sale Program the dealer will earn $80 a year per policy in revenue. How does the process work? See chart below: Enter User ID Enter Password Quotepro Login Input Data for Quoting Driver info Vehicle info Select coverage Compare Rates Compare Limits Receive Instant Quotes After selecting quote - Bridge to Carrier Website Make sure all Data is complete Select Plan to Upload & Bind Coverage Application UM Form Premium Finance Form Print Documents for Signing Print Proof of Give ID Cards Give Declaration Pages (800) Fax Documents to Arceri & Associates

6 Plan #2 -Blanket Creditor Placed (Self-insured program) can receive a liability only policy with a carrier and the dealer can combine it with a forced placed comprehensive and collision policy. This is a unique Blanket Creditor Placed Program designed by Buy-Here, Pay-Here dealers for BHPH dealers. Blanket Claims In addition to normal comprehensive and collision claims getting paid without any hassle for the dealer, in month 6, dealers may file blanket supplemental claims to draw money from the reserve fund. Blanket claims can be filed retroactive to the date of loss and include: Repo reimbursement up to $500 per repo Repo storage reimbursement up to $500 per Non-payment of comp/collision premium up to $2000 claim Insufficient insurance coverage (GAP Plus) up to $2,500 including a new down payment Cash Flow (see chart below) Using an average of only cars per month, in month 6 of the program, the dealer will be able to start pulling out about $3,000 a month from the reserve fund by filing blanket claims listed above. In month 12, about $6,000 a month; in month 18 the dealer will be able to draw out about $8,000 per month. We estimate the single interest, comprehensive and collision claims will average about 35% in losses leaving the balance to fund blanket supplemental claims.

7 $85/mo. premium 70% to dealer $250 Deductible Example of Premium Blanket CPI $85 per month is paid by the customer to the dealer. This can be paid by the customer weekly, bi-weekly or monthly. The carrier keeps 30% or $25.50 for administration to make sure the dealer is legal and compliant with state regulatory agencies. It also provides an easy-to-use web-based program to administer everything from enrollment, printing of certificates, billing and reporting, even adjusting and paying claims. The remaining $59.50 is placed into the account to pay both single interest and blanket claims to the dealer. Since the dealer is the insured, single interest claims can be submitted immediately online and checks are usually mailed to the dealer within 7 10 days after it has been reported, less a $250 deductible for which the customer is responsible. Maintain Control There is NO Underwriting and the premium is fixed on every vehicle. The amount of the premium is established by the dealer at the inception of the policy. The premium is paid on a monthly basis by the dealer; however the dealer may elect to collect the premium from the borrower on a weekly, bi-weekly or monthly basis. The premium payments will not negatively impact the dealer s cash flow. One of the benefits of this program to the dealer is he is the insured, not the borrower; therefore, the dealer controls the insurance on the collateral. Even if the borrower fails to pay the premium to the dealer, the dealer could continue to pay the premium if he chooses. All claim payments are paid directly to the dealer to make sure the vehicle is properly repaired. How does the CPI Process work? Log In with User Name and Password Enroll and Vehicle Print Agreement Give Proof of to Dealer can run reports, print statements along with file claims online using this 100% web-based program.

8 Implementing the Point of Sale Program Staff Needed 1 FT person to handle up to 25 new policies per week, process paperwork, receive and post payments and process renewal paperwork. From start to finish, it only requires about minutes to quote, bind, upload, print and fax and post the payment per new policy. Option: If you would like Arceri & Associates, Inc. to supply the PT or FT staff, we can do so for ½ the administrative cost. Explanation of work required Quoting and placing of policies includes assisting the customer with data entry into an online comparative rater to receive insurance quotes. After the customer agrees to purchase a policy or policies, you assist the customer in placing the policy by collecting the initial down payment and future payments and setting this money aside in an escrow account to be used to upload periodic premium payments to the carrier(s). This budgeting of payments helps the customer avoid late fees, cancellation fees and reinstatement fees and in turn eliminates costly repossessions. In addition, assistance includes helping the customer in signing the required paperwork (insurance application, uninsured motorist forms, premium finance forms, power of attorney forms and any other required documents) and faxing and ing these executed documents to Arceri & Associates, Inc. and the underwriter for processing. Office Equipment Needed Computer with Internet Access Printer Black & White, Laser Fax Machine Software Needed V- Software Provided Checking Account Needed Set up a separate checking account Choose Plan Full Coverage with Carrier Liability Only combined with Blanket CPI Self-insured Comp/Collision