With an executive team in place as well as a relationship with the National Independent Automobile Dealers Association cultivated, National Lenders General Agency announced a new product offering this week.

The firm specializing in reinsurance products for dealerships and finance companies in the buy-here, pay-here, lease-here, pay-here and point of sale markets launched contractual protection insurance (CPI) program at what National Lenders believes is an industry-leading rate of 8% ceding fee plus state insurance premium tax in licensed states

President Ken Terkel and executive vice president and chief operating officer Eric Hurst said through a news release that the program is effective immediately, noting that competitors currently offer CPI ceding fees between 12% and 20%.

National Lenders said it invested several million dollars in seed capital into researching and “perfecting” the traditional CPI programs to create an infrastructure and vertical of companies that provide more profit retention for clients. The investment includes retaining a top legal firm to design the consumer compliance and forms for its carrier, Empire Indemnity Insurance Company RRG.

National Lenders’ CPI program can protect the financial interest of the dealership and finance company by insuring the contract’s diminished monetary value in case of an accident involving the collateral (car). The collateral can be repaired or paid off in the event of a total loss.

National Lenders mentioned additional benefits are in place, such as providing dealers and finance companies interactive technology with a PII-compliant 24/7 online portal for monthly reporting to file and track claims, generate reports and take greater control of the customer experience — potentially increasing the odds of repeat business.

Terkel noted the price point of the firm’s new product will impact the reinsurance and profit-sharing marketplace.

“We’re confident our CPI product will make lenders’ lives easier and more profitable,” Terkel said in the news release. “We’re filling a need in the market for more transparency, more protection of lender interests, and greater wealth-building potential.”

National Lenders will be debuting the 8% pricing model at the NIADA Convention in Las Vegas on June 20-23, and the TIADA Convention in Austin, Texas, on July 24-26.