Should GAP Be Sold on RVs and Travel Trailers?

Posted by on Jun 25, 2019 in News |

Article by our partners at Frost Financial Services | www.frostinsure.com Do you ever finance RVs or travel trailers? If so, make sure to stress the importance of GAP protection on these loans. While you may not see many accidents involving RVs or travel trailers, many of them experience total losses each year. Accidents are certainly not as frequent, but plenty are so severely damaged due to flood, vandalism, fallen trees, and fire that they are unrepairable and deemed total losses by primary insurers. Adding to the GAP risk on RVs and travel trailers is the challenge of accurately valuing the collateral at the time of financing. You can utilize a guide book or even refer to a dealer invoice, but validating model and options can oftentimes lead to many more challenges and errors in valuing RVs and travel trailers than we see in the much more standardized world of autos. These errors can create significant overvaluation of collateral and unexpected exposure to loss. And, if you think automobiles and trucks are depreciating rapidly these days, these are luxury items and can see even more wild swings in values from year to year as market conditions change. Lastly, the loans for these collateral types tend to be longer terms. This means that the loan balances will amortize down more slowly and only add to the potential of a large GAP loss even when the loan was financed well under 100% of the value at loan origination. A recent claim highlights how a number of the above factors can come together and result in a significant GAP claim. In May 2015 the lender financed $92,485 on a 42′ Jayco RV that had an assumed value of $83,710. Three years later a fire caused a total loss of the RV and the settlement provided by the primary insurer was $53,445. This left an outstanding loan balance of $30,595. Fortunately, this loan had GAP protection and the $30,595 loan balance was paid in...

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Introducing our New Employee Benefits Specialist

Posted by on Jun 18, 2019 in Benefits Update, News |

Insurance Trust is pleased to introduce Pam Huntington as our new Employee Benefits Specialist. Pam comes to our team with more than fifteen years of experience in the health insurance and voluntary benefits field.  She has previously worked as an Account Manager at both the health insurance carrier and broker levels.  Pam also worked in multiple roles at a local Maine credit union for five years.  Pam was born and raised in Portland where she attended Deering High School.  She then attended Southern Maine Community College where she earned an Associate Degree in Automated Office Management.  Pam enjoys spending time with her husband, children and black lab, Bo, as well as motorcycle rides and time at the lake. “I am excited to be part of the credit union movement and look forward to the opportunity to assist our credit union and small business partners with all of their employee benefits needs.  I like that I can use the skills I have learned from my previous experiences to help educate employees on how to best understand what they have for benefits at a level that is comfortable for them.  I am excited for this journey.”   As Employee Benefits Specialist, Pam’s focus will be to communicate with our insurance carriers, credit unions and small business clients to provide education and service for all group employee benefits programs.  Pam will conduct renewal meetings for our clients and continually work to present new and alternative options for our current and potential clients. Pam can be reached at 207-773-0925 ext. 314...

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