What it does
CA 20 19 is a business auto endorsement for lenders that take possession of financed autos. Its schedule provides a Covered Autos Liability limit and premium (with a minimum premium) and, by location, physical damage coverages with a limit of insurance for each location and deductibles, including a deductible for each covered auto for loss caused by theft or mischief or vandalism and a maximum deductible per loss. The current edition is 11 20 (a five-page form).
Who needs it
Banks, credit unions, sales finance companies and buy-here-pay-here lenders that repossess autos and store them until sale, and that need liability while repossessed autos are driven and physical damage while they sit on lots.
Quoting notes
- Get the number of repossessions per year, average and maximum values at each storage location, and whether the lender or a contractor does the recovery driving.
- Pair with CA 99 13 Fiduciary Liability Of Banks for trust departments, and with single interest policies (CA 26 01, CA 26 02) for collateral still in borrowers' hands.
