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New ICBA Reinsurance GAP Program Protects Customers, Helps Banks Reduce Auto Loan Charge-Offs

Washington, D.C. (Jan. 13, 2014)—ICBA Reinsurance announced a new alliance with Transamerica and Frost Financial Services Inc. to bring an enhanced Guarantee Auto Protection (GAP) program, AutoShield GAP(SM), to ICBA community bank members. GAP products protect an auto loan borrower’s new vehicle in the event it is stolen or damaged and deemed a total loss. AutoShield GAP pays the difference in what the insurance company says the vehicle is worth and the remaining balance that the borrower owes, which protects the bank’s customers and the bank itself.

Transamerica provides credit life and disability products to ICBA members through the ICBA Reinsurance program. When community banks add AutoShield GAP to their product portfolios they can offer customers an additional opportunity to protect one of their largest investments, their automobiles. Customers can purchase AutoShield GAP any time during the term of the loan and have payment flexibility in the form of credit cards or bank draft.

“Borrowers need protection from upside-down loans and the risk of losing their essential transportation. Many consumers purchase GAP at the dealership, and it can be costly. ICBA members can now provide customers a GAP program with some of the best coverage in the market at a price significantly less than what they will typically pay at the dealership,” said Jim Tenhundfeld, president of Frost Financial Services. Frost is the administrator of AutoShield GAP.

Todd Schubert, senior vice president of the Financial Solutions Group at Transamerica, agrees. “AutoShield GAP protects customers during the early part of the loan, when a car’s value is higher than an auto insurance company’s pay out in the event of a total loss,” he said. “It’s the type of product Transamerica is proud to stand behind, because it provides real benefits to customers.”   

Steve Ello, president and CEO of ICBA Reinsurance, says that AutoShield GAP’s skip-a-payment function will help community banks reduce potential charge-offs while providing a valuable service to their borrowers. “We are committed to making this a successful program for community banks engaged in auto lending,” he said. “The sign-up and start-up processes are easy, and complimentary sales tools and training will ensure that program participants have the resources and support that they need.”

To learn more about how to drive results through AutoShield GAP or to sign up for the program, contact ICBA Reinsurance at 888-790-6625.

About ICBA Reinsurance
ICBA Reinsurance allows banks that sell credit insurance to share in the insurance underwriting and premium investment income. A part of the
Independent Community Bankers of America (ICBA), the nation’s voice for community banks, ICBA Reinsurance is run by community bankers for the benefit of community bankers. ICBA Reinsurance wrote its first piece of business in 1999, has paid ten consecutive dividends to participating banks and is backed by the strength of ICBA's more than 75 years of providing community bankers with quality products and services.

About Transamerica
Transamerica, through its subsidiary and affiliated companies in the Americas, is one of the leading providers of life insurance, retirement, long-term savings and investment solutions. Its companies in the United States trace their roots back over 100 years. Transamerica’s main offices are in Cedar Rapids, Iowa, and Baltimore, Maryland, with affiliated companies’ offices located throughout the United States. For more information:

About Frost Financial Services Inc.
Frost began specializing in the GAP market after its initial program was successfully introduced in 1998 to the Ohio Lender market. In 1999 Frost began developing the VisualGAP internet based tool and also began providing turnkey Administrative support for its GAP clients. With the introduction of VisualGAP in 2001, Frost rapidly expanded its GAP program to Brokers throughout the U.S. Currently, Frost works with more than 50 Brokers Agencies and serves the needs of more than 1,000 Lender clients nationwide.

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