State National Completes First Wave Of Collateral Protection Insurance Transition

Centra Credit Union's experience highlights success of industry's largest collateral protection insurance alliance

State National Companies announced that it has successfully completed the first group of collateral protection insurance account transitions from CUNA Mutual, representing over 50 credit unions across the United States.

In July 2009, CUNA Mutual Group and State National Companies formed an alliance to expand automobile Collateral Protection Insurance to credit unions nationwide. The State National/CUNA Mutual alliance created the largest consumer automobile collateral protection insurance entity in the credit union marketplace. The alliance delivers both immediate and long-term benefits to credit unions and their members by combining the resources of State National, the only company that provides collateral protection insurance as its core focus, with CUNA Mutual, a leading provider of financial services to credit unions.

The State National/CUNA Mutual alliance created linkages for key program components, thereby eliminating the traditional hassles of program conversions. "The transition process from the CUNA Mutual program to the State National program was seamless for us," said Robert L. Crump, Vice President of Consumer Lending at Centra Credit Union, one of the first credit unions to transition.

Seamless processing has continued now that the transition has been completed. "The flow of business through State National has been very smooth from day one," Crump said. "Whenever we send any request to State National, it gets handled in a timely manner with good attention to detail, which benefits our relationships with our members."

Collateral protection insurance safeguards credit unions' loan portfolios against uninsured physical damage exposures. In the alliance, State National assumed underwriting, claims processing, customer service, and insurance tracking responsibilities for all of CUNA Mutual's automobile collateral protection business.

Those tracking services are essential to Centra. "We have over 18,000 loans on the books, and there's no way we could track those on our own," Crump said. "State National handles that job expertly while ensuring that the loans we make are well protected."

State National offers InsurTrak, a leading-edge tracking and program management platform, and myloaninsurance.com, an online tool where members can submit proof of private insurance, to make program administration efficient and cost-effective. "State National's online tools make it easy to follow up on notification letters and any questions that arise," said Crump.

"We are delighted that Centra has completed the transition to State National along with many other CUNA Mutual customers," said Trace Ledbetter, Senior Vice President at State National. "CUNA Mutual and State National have a long history of serving the credit union industry, and we are proud to continue that tradition through the alliance."

"State National offers a solid collateral protection program that is straightforward, easy to manage, and provided a smooth transition from CUNA Mutual," Crump added. "We've been very happy with the experience."