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WHAT IS COLLATERAL PROTECTION INSURANCE?
Collateral Protection Insurance, or CPI, insures property for physical damage that is held as collateral for credit agreements, loans, and leases. It does not provide bodily injury, no fault or liability insurance and does not comply with any state financial responsibility.
CPI is also known as force-placed insurance or lender’s placed insurance.
CPI insures the creditor’s interest in the collateral for physical damage and unrecovered theft.
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