The Dealer Receives a Dealer Agreement and attaching Down Payment Guarantee.
The Dealer provides the Down Payment Guarantee to the customer.
The MGA are liable forthe cover and administer the claims.
The assumed liabilities of the MGA are insured under a CLIP, issued on an admitted basis by Lloyd’s Underwriters.
How is the cover structured?
This is not a customer facing insurance policy.
The coverage forms part of the dealers’ vehicle purchase agreement, and the customer receives a promise from the dealer that in the event that their vehicle is declared a total loss by their primary vehicle insurer (within a certain number of months from its purchase), the dealer will provide a credit for the purchase of a subsequent vehicle replacement.
The Dealer Agreement sets out certain parameters and products, including Down Payment Guarantee, which the Dealer can offer. These liabilities are then covered by our MGA Partner who in-turn insures them under a contractual liability insurance policy (CLIP) issued on an admitted basis by Lloyd’s Underwriters. The CLIP has been filed with and approved by the Illinois Department of Insurance.
From its beginnings in a coffee house in 1688, Lloyd’s has been a pioneer in insurance and has grown over 325 years to become the world’s leading market for specialist insurance.
Fitch Ratings one of the largest credit rating agencies in the world, have given Lloyd’s an A+ rating, despite the downward pressure in the Global Economy. This rating has been coupled with a stable outlook.