If a borrower fails to retain or renew insurance coverage the bank purchases an insurance policy that covers the collateral (force place insurance). The bank is the only beneficiary on the force placed insurance policy. Force place insurance can occur at any time once the bank is notified by the insurance agent that coverage has lapsed. Note: Flood insurance will be force placed using definitive time frames for evidence of coverage. Flood insurance can never be waived.

Loan Servicing is responsible for the force placement of coverage when: 

• Loans are identified as having lapsed insurance,
• The borrower has failed to provide evidence of insurance, and/or
• Insurance coverage is not sufficient enough to cover the collateral.
• The premium will be paid to our vendor, Proctor Financial.
• The premium amount will be added to the borrower's principal balance. 
• The borrower will not receive proceeds in the event that the collateral suffers a loss; only the bank will receive proceeds.
  • The bank has the option of applying insurance proceeds to pay down the borrower's balance on the loan.
  • The Lender may make contact with the borrower to initiate repairs required by the bank to restore collateral. 
• Letters are generated from our vendor and sent to borrower's who lack sufficient insurance coverage. 
• The letters are staged at certain intervals before moving to force placing insurance. 
• Lenders may monitor borrower's insurance coverage by using Proctor Portal Link. If you do not have a log-in, please email the Loan Servicing Department Manager. 

All insurance questions and policies are to be directed to _Loan Service Insurance.