KISTLER AGENCY, LLC Lenders Reference Guide Summary of Programs for Your Institution 3400 Peachtree Road, Suite 1720, Atlanta, GA 30326 (P) 404.239.7022 (F) 404.239.7029 Email: tkistler@kistleragency.com amorley@kistleragency.com
Table of Contents Bio Products and Services Blanket Hazard Insurance Lender Placed Hazard Lender Placed Flood Lender Placed Wind Lender Placed Collateral Protection Insurance (CPI) Lenders Single Interest Insurance (LSI) Guaranteed Asset Protection (GAP) Why Choose Kistler Agency, LLC Contact Information
KISTLER AGENCY, LLC Kistler Agency, LLC is an agency / broker that specializes in collateral protection for all types of lending institutions, primarily concentrating on mid tier community banks and credit unions. Collateral protection is defined as insurance which protects the lenders collateral against a loss when their customer fails to have insurance for whatever reason (cancellation, expiration, non- renewal and/or deficiency). Currently, Kistler Agency, LLC utilizes best of breed interface technology. Kistler Agency, LLC provides the tools and services to allow customization and risk management tools which are uniquely designed to each individual risk. Below are a few of the leading products our clients utilize for their risk management and loss prevention: Lender Placed Flood Including Excess Flood Protection Lender Placed Wind Lender Placed Hazard Flood Zone Determination REO Coverage Including Liability Blanket Hazard Insurance Mortgage Impairment Insurance GAP Guaranteed Asset Protection CPI Lender Placed Collateral VSI Vendor Single Interest Insurance Kistler Agency, LLC also provide surplus lines coverage (Lloyds of London) for hard to insure issues that may arise, such as standalone wind coverage, hazard, flood, or excess flood. Through our network of carriers throughout the country, we can provide coverages and rates you may not have seen before. That s what we strive to do on a case by case basis every day. Kistler has been a name in the Insurance Industry for over 60 years and we pledge to continue to work hard toward our common goal of providing exceptional service and value to the clients.
In House Tracking REO Hazard Flood Tax Management Auto Consumer Instant Order and cancel coverage via internet Outsourced Tracking REO Hazard Flood Wind Auto Consumer Escrow Management for Insurance and Tax's Blanket Coverages Mortgage Impairment Blanket Hazard & Flood Blanket VSI for Auto & Consumer Risk Management ConsulQng and Compliance Issues Bonds & D&O Coverages CollecQon Services Online ReporQng Claims and Tracking Income Products GAP Credit Life AD&D Home Warranty Bounce Check ProtecQon and more
BLANKET HAZARD INSURANCE Protect your loans against uninsured losses in one step. For hazard coverage for your 1 st or 2 nd mortgages, HELOCs, or condominium unit loans for protection against uninsured losses without the hassles of tracking insurance blanket insurance is the sure and worry free way to protect your portfolio. MAJOR BENEFITS Kistler Agency s Blanket Hazard Insurance provides mortgage lenders and servicers with a simplified method of insuring mortgage loans without the complications of tracking insurance. Major benefits include: Blanket Hazard all risk coverage for residential and names peril for commercial properties based on ISO coverage forms Simple issue blanket policy issued based on reported portfolio information Flexible billing premium can be billed quarterly or annually Quick claim processing covered losses are settled under the blanket policy COVERAGE INFORMATION The following is a summary of specific coverage information: Coverage Separate stand- alone blanket policy Eligible properties 1 to 4 family dwellings, condo units, townhouses, mobile homes and commercial properties Condo unit coverage applies primarily to the individually owned building elements and improvements in the dwelling or unit; and secondarily to the ownership interest of the lender/servicer in common building elements, i.e. building walls, stairs, roofs and floors No coinsurance requirement No coverage for contents or liability Limits of Liability Hazard: Loan balance at time of loss, up to $1,000,000 per location or as provided in blanket hazard insurance proposal, whichever is lower Deductibles Hazard: Greater of $1,000 or 1% of loan balance at time of loss, or as provided in blanket hazard insurance proposal, whichever is higher Wind: Greater of $2,000 or 2% of loan balance at time of loss for residential properties; greater of $5,000 or 5% (if occupied) or $10,000 or 10% (if vacant) of loan balance at time of loss for commercial properties Premium Basis Total outstanding loan balance of the covered portfolio or total loan count
LENDER PLACED HAZARD MAJOR BENEFITS Backed by the world s largest insurance market Up to $7 billion in insuring capacity Covers losses caused by multiple perils such as fire, smoke, water, wind, civil commotion, explosion, theft, vandalism etc. Immediate coverage no waiting period Minimal property and loan information required to place coverage Coverage can be backdated up to 30 days giving you up to 90 days of critical interim coverage pending borrower response Automatic Coverage (subject to eligibility criteria) Flexible borrower notification letter cycle Blanket coverage available Coverage automatically renews COVERAGE INFORMATION 1-4 Family Residential Properties Replacement Cost coverage of Building Actual Cash Value coverage on Other Structures No co- insurance requirement Debris Removal and Loss Avoidance Measures coverage Temporary Housing Expense up to $1,000 per loss Mobile Home coverage Unit Owner loss assessment coverage Optional Earthquake Coverage Liability coverage available for REO properties Up to $1,000,000 in building coverage (higher limits available) Various deductible options Commercial Properties Replacement Cost coverage on Building Actual Cash Value coverage on Other Structures Coverage for commercial condominium units Coverage for hotels, motels, retail stores and other businesses establishments No co- insurance requirement Contents coverage available Up to $2,500,000 in building coverage (higher limits available) Various deductible options
LENDER PLACED FLOOD MAJOR BENEFITS Backed by the world s largest insurance market Up to $6 billion in insuring capacity Covers losses caused by multiple perils such as fire, smoke, water, wind, civil commotion, explosion, theft, vandalism etc. Immediate coverage no waiting period No elevation certificates required Available deficiency coverage when borrower s insurance has insufficient limits Available deductible buy- back coverage when borrower s insurance carries excessive deductible Automatic Coverage (subject to eligibility criteria) Flexible borrower notification letter cycle Special notifications to borrowers affected by flood map changes Flexible rating based on lender preferences Blanket coverage available Coverage available in Coastal Barrier Resources System areas Less restrictive cancellation provisions compared to the NFIP Coverage automatically renews Increased Cost of Compliance coverage up to $30,000 included COVERAGE INFORMATION 1-4 Family Residential Properties Replacement Cost coverage of owner- occupied dwellings Actual Cash Value coverage on Other Structures No co- insurance requirement Temporary Housing Expense up to $1,000 per loss Mobile Home coverage Unit Owner loss assessment coverage for underinsured condo associations Up to $250,000 in building coverage Up to $120,000 in contents coverage (if part of loan security) $1,000 standard deductible ($750 available) Commercial Properties Actual Cash Value coverage on building Coverage for commercial condominium units Coverage for hotels, motels, retail stores and other businesses establishments No co- insurance requirement Up to $500,000 in building coverage Up to $500,000 in contents coverage (if part of loan security) $1,000 standard deductible
MAJOR BENEFITS LENDER- PLACED WIND Backed by the world s largest insurance market Up to $3 billion in insuring capacity Covers losses caused by hurricane, hail, windstorm, wind gusts, tornadoes and cyclones Immediate coverage no waiting period Minimal property and loan information required to place coverage Coverage can be backdated up to 30 days giving you up to 90 days of critical interim coverage pending borrower response Automatic coverage (subject to eligibility criteria) Flexible borrower notification letter cycle Blanket coverage available Coverage automatically renews COVERAGE INFORMATION 1-4 Family Residential Properties Replacement Cost coverage on building No co- insurance requirement Debris Removal and Loss Avoidance Measures coverage Temporary Housing Expense up to $1,000 per loss Mobile home coverage Unit Owner loss assessment coverage Up to $1,000,000 in building coverage (higher limits available) Deductible: The greater of 2% of the coverage amount of $2,000 Commercial Properties Replacement Cost coverage on building Coverage for commercial condominium units Coverage for hotels, motels, retail stores and other business establishments No co- insurance requirement Up to $1,000,000 in building coverage (higher limits available) Deductibles: The greater of 5% of the coverage amount or $5,000 if occupied The greater of 5% of the coverage amount or $10,000 if vacant
LENDER- PLACED COLLATERAL PROTECTION INSURANCE (CPI) YOU AND YOUR BORROWERS BOTH WIN Identifies your exposures by effectively managing your insurance date Protects the loan collateral for borrowers who cannot obtain insurance Uninterrupted protection if borrower s insurance lapses or cancels MAJOR BENEFITS Identifies your exposures by effectively managing your insurance date Protects the loan collateral for borrowers who cannot obtain insurance Uninterrupted protection if borrower s insurance lapses or cancels MANAGING INSURANCE REQUIREMENTS DATA CAPTURE AND MANAGEMENT Insurance information is captured and stored in one centralized data management system Managed data include inception to date history of insurance documents, borrower notices, lender- placed collateral protection coverage and claim records Information is updated automatically each time new insurance information is received, noticed is generated or incoming borrower call is handled RISK ASSESSMENTS After loading of insurance data, potential exposures are identified per loan Best solution or solutions package is offered which may include blanket insurance, errors and omissions coverage or lender- placed collateral protection insurance POLICY MANAGEMENT Rating, issuance and monitoring of coverages is implemented either through your borrower s insurance broker or agent or through a combination of Kistler Agency s lender- placed collateral protection coverages such as: All- Risk Physical Damage Automatic Protection Waiver of Repossession Uncollected Premium Repossession and Return Expense Insufficient Insurance Confiscation Conversion (Skip) Instrument Non- Filing Errors and Omissions Repossessed Property Worldwide Protection Rigorous service standards are applied including tight monitoring of lender- placed coverages and false placements
MAJOR BENEFITS LENDERS SINGLE INTEREST INSURANCE (LSI) Fully protects your portfolio without the need for a full- scale insurance compliance program Enables you to allocate more resources to business building in lieu of insurance monitoring Provides comprehensive protection to cover your most important exposures PROGRAM INFORMATION COVERAGE SET All- Risk Physical Damage Coverage Instrument Non- Filing, Errors and Omissions Coverage Repossession and Return Expense Coverage Confiscation Coverage Skip Coverage Waiver of ACV Coverage Repossessed Property Coverage COVERAGE ISSUANCE PROCESS Kistler Agency, LLC generates premium quotation for acceptance Upon acceptance of quotation, a blanket policy is issued to protect newly originated loans Blanket policy can also include for renewable annual terms or provides continuous coverage Blanket policy is issued for renewable annual terms or provides continuous coverage CLAIMS SERVICES Claims are handled by a Kistler Agency, LLC owned and operated claims administration Over 90% of physical damage losses are settled within 10 days or less Loss reports are accepted via the internet or by fax, 24 hours a day and 7 days a week
What s the GAP? GAP (Guaranteed Asset Protection) COVER POTENTIAL LOSSES BY HELPING YOUR BORROWERS COVER THE GAP The value of a vehicle declines rapidly during the first several years of ownership, and with loan terms steadily increasing and down payments decreasing, the loan payoff amortizes in a slower manner throughout the term of the contract. Maintaining full coverage insurance does not guarantee that the borrower is fully protected against financial loss. If a vehicle is stolen, accidentally damaged beyond repair, or otherwise declared a total loss, the borrower s insurance coverage will only cover the actual cash value of the vehicle. The borrower remains liable for the difference between the insurance settlement and loan balance. This deficiency, or GAP, can easily amount to thousands of dollars. Experience GAP Benefits Our program protects the lender and the borrower from this deficiency. GAP covers the difference between the insurance settlement and the loan payoff, providing valuable protection against potential out- of- pocket dollars in the event of an insurance shortfall. In most states, even the borrower s insurance deductible is covered up to $1,000. GAP Program benefits the lender by: Reducing credit and loan losses Providing valuable service to borrowers Providing fee income opportunities Increasing borrower satisfaction Providing easy administration and claim filing processes Providing optional internet- based training KISTLER AGENCY S GAP PROGRAM BENEFITS Limiting out of pocket expense in the event of a total loss Protecting the borrower s credit rating Preventing financial hardship Making the purchase of a replacement vehicle more affordable Providing peace of mind GAP PLUS GAP Plus is an option that delivers an additional borrower benefit by providing a discount allowance many times as high as $1,000 toward the purchase and financing of a replacement vehicle, as long as the replacement vehicle is financed with the same lender. GAP Plus is not available in all states. REPORTING SERVICES Timely and comprehensive reports are an integral part of our ongoing communication with you. We can easily generate custom reports, drawing from the extensive information in our database.
Why Choose Kistler Agency, LLC? 1. Experience 23 years in the lender- placed insurance business Decades of experience among senior and account management executives Hands on loan department support and training 2. Relationships Brown & Brown / Proctor Financial, OSC, FIC, WNC/ Kiln, Allied Solutions and Lloyds of London Hundreds of partnerships with multi- state agencies and insurance brokerage firms 3. Technology 4. Service Internet based utilities such as iclient, E Client and iaminsure.net used for convenience, speed and productivity Automated document management for accuracy and efficiency SSAE 16 (SAS 70 Type II) certified controls to protect data and processing facilities Escrow tax and insurance management tools and interface technology Partnership Development Team of service, product and compliance experts Tested and certified Disaster Recovery and Business Continuity Plan to recover processing capability within seventy- two hours of a declared disaster 5. Support Webinars and onsite client staff training for convenience and efficiency Standard and custom reports for effective risk management and compliance Collaborative Program to meet special requirements and needs
Contact Information Kistler Agency, LLC Thomas W. Kistler CEO tkistler@kistleragency.com 3400 Peachtree Road, Suite 1720, Atlanta, GA 30326 Office: 404. 239. 7020 Cell: 404.989.9622 Kistler Agency, LLC Ann M. Morley Vice President Marketing & Underwriting Support amorley@kistleragency.com 3400 Peachtree Road, Suite 1720, Atlanta, GA 30326 Office: 404. 239. 7021 Cell: 248.765.4671 Kistler Agency, LLC Ehney A. Camp IV ecamp@kistleragency.com 3400 Peachtree Road, Suite 1720, Atlanta, GA 30326 Cell: 205.743.9660