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Overcoming Fears of Member Noise is Key to Selling CPI, says Provider

State National Companies provides Collateral Protection Insurance (CPI) to approximately 340 credit unions and John Pearson, executive vice president, national sales manager thinks it's still a misunderstood product, but an often necessary one.

By Staff Writer | Updated on June 12, 2007

DALLAS — State National Companies provides Collateral Protection Insurance (CPI) to approximately 340 credit unions and John Pearson, executive vice president, national sales manager thinks it’s still a misunderstood product, but an often necessary one.

“I’m asked all the time by credit union CEOs, ‘What’s the value to my credit union?’ and I tell them that a credit union is a bottom line-driven institution as much as it is a member-driven one. But we’ve done a number of studies where we have taken a slice of a large credit union’s repossessed cars. We calculate what the CPI would provide the credit union, as opposed to what the CU would get if they sold the car. I can come up with a pretty good figure, considering that one-in-three repos are damaged, and some say it’s more like two-out-of-three. With the average repo damage of $3,500 its not hard to see how CPI coverage can save a credit union money,” said Pearson.

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