The buyer changed insurance companies and did not list lien holder. Buyer was in a bankruptcy so could not be contacted reguarding the issue.
Total Comments: 1
Posted: Wed May 07, 2014 12:07 am Post Subject:
You can't type the question into the subject line. But not, carriers are not required to check for a lien holder. They are only required to protect the lien holders interest when put on notice that there is a lien holder. The old carrier should be obligated to inform the lien holder that their policy is no longer valid. It' then up to the lien holder to confirm who the new carrier is and put them on notice. If no carrier is reported then usually the loan agreement allows for force placed insurance or a repo.
Posted: Wed May 07, 2014 12:07 am Post Subject:
You can't type the question into the subject line. But not, carriers are not required to check for a lien holder. They are only required to protect the lien holders interest when put on notice that there is a lien holder. The old carrier should be obligated to inform the lien holder that their policy is no longer valid. It' then up to the lien holder to confirm who the new carrier is and put them on notice. If no carrier is reported then usually the loan agreement allows for force placed insurance or a repo.
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