Skip to main content

CUNA Mutual Group Debuts New Transportation Collateral Protection Enhancement

CUNA Mutual Group Debuts New Collateral Protection Enhancement

Protects Credit Unions Against New Risks Related to Transportation Network Companies

MADISON, Wis.--(BUSINESS WIRE)--CUNA Mutual Group is enhancing its Collateral Protection solutions for credit unions to address emerging risks to their loan portfolios related to the growing popularity of Transportation Network Companies (TNCs) like Uber and Lyft.
“So there would be no coverage for the credit union in this situation. That’s why we created the TNC endorsement to cover credit unions should this occur.”
A new no-cost TNC endorsement to CUNA Mutual Group’s Collateral Protection Blanket Auto policy protects credit unions from potential loan losses due to damage caused while a borrower is operating as a TNC driver. The new coverage became effective Oct. 1, in most states. State National Companies, CUNA Mutual Group’s alliance partner for Tracked Collateral Protection Insurance, will also be adding a similar, no-cost endorsement for Tracked CPI customers.
Ride sourcing organizations such as Lyft and Uber enable individuals to use their personal, non-commercial vehicle as a livery, or taxi-type service through a mobile app managed by the TNC that connects passengers with drivers. Drivers are attracted by the opportunity to be their own boss, work a flexible schedule and earn extra income.
However, most personal auto policies don’t include coverage for commercial use, and state legislation doesn’t require TNCs to provide comprehensive/collision coverage, said Al Olson, CUNA Mutual Group staff underwriting specialist. As a result, many drivers aren’t aware they may not be adequately covered when driving for a TNC.
“TNC drivers might think their personal insurance will cover them if they are in an accident while ‘on the job,’ but that may not be the case,” Olson said. “If physical damage occurs and there is no insurance coverage, the likelihood of drivers defaulting on their auto loans increases, which creates a potential loss exposure for lenders.”
Although a credit union may have collateral insurance in force to protect their loan portfolio, standard collateral insurance coverage excludes vehicles while used for “public or livery conveyance,” Olson added. “So there would be no coverage for the credit union in this situation. That’s why we created the TNC endorsement to cover credit unions should this occur.”
To learn more, attend CUNA Mutual Group’s Discovery Conference on Oct. 21, to participate in a live chat about “Uber, Lyft and Your Rising Loan Risk” at 10:10 a.m. CDT, in the “Protect Your Loan Portfolio” booth located in the conference’s Solutions Center. Registration for the event is free.
About CUNA Mutual Group
CUNA Mutual Group was founded in 1935 by credit union pioneers, and the company’s commitment to their vision continues today. CUNA Mutual Group offers insurance and protection for credit unions, employees and members; lending solutions and marketing programs; TruStage™-branded consumer insurance products; and investment and retirement services to help customers build financial security. For more information, go to www.cunamutual.com. 

Comments

Post a Comment

Please no profanity or political comments.

Popular posts from this blog

New Year’s Resolution: Getting Your Estate in Order

        Helping families and their businesses plan for the future     Your Most Important New Year’s Resolution: Getting Your Estate in Order   Happy New Year to all. Every January, millions of Americans resolve to lose weight, exercise more, or learn a new skill. These are admirable goals. But there’s one resolution that matters more than all of them combined—one that most people avoid because it forces them to confront their own mortality. Get your estate in order. Not next year. Not when you retire. Now. The Problem With Tomorrow Here’s what I see constantly...
Post a Comment
Read Complete Article HERE>»

Syracuse Fire Department Credit Union

 Congrats, Tonia, on your promotion! ================================================= Remember, you're not alone with  NCOFCU.org Join/Upgrade Check out some of NCOFCU's additional features: First Responder Credit Union Academy Financial Literacy Podcasts YouTube Mini's Blog Job Board
Post a Comment
Read Complete Article HERE>»

Sunday Reaing - Can the seasons really make you depressed?

    Can the seasons really make you depressed? Seasonal affective disorder   is a form of depression that repeats during predictable seasonal shifts, impacting an estimated 5% of the global population—predominantly women. Symptoms of the condition occur with significant cyclical changes in daylight hours, with prevalence increasing in regions north of 40 degrees latitude (less commonly in the Southern Hemisphere). Its etiology—or root cause—remains unclear to researchers. Though “winter blues” are commonly reported, SAD is a distinct, diagnosed subtype of major depressive disorder first formally described in 1984 ( see criteria ). Key symptoms—lasting roughly four months each year—resemble common depression: fatigue, increased sleep, carbohydrate cravi...
Post a Comment
Read Complete Article HERE>»

NCUA Issues 2026 Supervisory Priorities Letter to Credit Unions

Alexandria, VA (January 14, 2026)  ― The National Credit Union Administration (NCUA) today announced its 2026 Supervisory Priorities, which continue the agency’s policy of “No Regulation by Enforcement,” while prioritizing safety and soundness. This policy underscores NCUA’s commitment to providing clarity and transparency in its oversight. The letter outlines NCUA’s priorities for the year and provides information to help credit unions prepare for examinations. This year, the agency will continue to focus on risk-based supervision, tailoring the examination scope to the credit union’s unique risk profile. Key Highlights of the 2026 Supervisory Priorities: Risk-Focused Examinations:  Examiners will concentrate on areas posing the greatest risk to credit union members, the credit union system, and the Share Insurance Fund. Balance Sheet Management and Lending:  With loan performance at its weakest point in over a decade, examiners will review credit risk management practic...
Post a Comment
Read Complete Article HERE>»

A 10% Cap, A Busy Congress, And Big Stakes For Credit Unions This Week

WASHINGTON—Credit union trade groups entered the week in Washington closely monitoring developments after President Trump’s proposal for a nationwide 10% cap on credit card interest rates, even as Congress returns to work on funding, financial services reform, and digital asset legislation. Both the Defense Credit Union Council and America’s Credit Unions say the rate-cap proposal poses an immediate threat to consumers credit unions disproportionately serve, while a fast-moving legislative agenda could shape the industry’s operating landscape for years. DCUC President and CEO Anthony Hernandez said the defense-focused trade group mobilized within hours of the President’s announcement, warning the cap could sharply limit access to credit for junior enlisted servicemembers, young officers with student loan debt, and federal workers already strained by a potential shutdown. Anthony Hernandez Hernandez said DCUC began responding within hours, providing comments to the press Friday night an...
Post a Comment
Read Complete Article HERE>»

What Could Tokenized Deposits Mean for CUs?

WASHINGTON—Noting that the FDIC has expressed support for tokenized deposits as insured bank liabilities, not experimental digital assets, a new analysis offers some insights into what that could mean for financial institutions, credit unions and the market in 2026 and beyond.  As PYMNTS Intelligence pointed out in its report, regulatory clarity reduces risk for banks moving from pilots to live deployments, and large banks and infrastructure providers are already testing real-world tokenized deposit use cases.  “At its simplest, tokenization converts an existing claim into a digital representation on a distributed ledger,” the report explained. “The underlying asset does not change, but the infrastructure that tracks ownership and settlement does. In banking, that distinction is critical. Tokenized deposits do not create new money. They represent traditional bank deposits, issued and redeemed by regulated institutions but designed to operate on modern, programma...
Post a Comment
Read Complete Article HERE>»

Are Credit Unions Serving First Responders Ready for the Coronavirus?

As the coronavirus outbreak continues to grow are credit unions serving first responders ready? Credit unions serving first responders will be a primary point of contact as first responders come off duty and into the credit union. ARLINGTON, Va.—How effective are credit union plans for addressing pandemics and business continuity?   It’s a question credit unions need to be asking right now as the coronavirus outbreak continues to grow. Death tolls this week topped 1,100, with a record 100 officially reported as getting sick in a day. The coronavirus has already surpassed SARS (severe acute respiratory syndrome) in number of affected and killed. Experts told CUToday.info the growth of the coronavirus that CUs should be reviewing their pandemic and business continuity plans, which likely have not been visited since the SARS outbreak in 2002. “I think it's too early to tell what kind of impact the coronavirus may have here in the U.S.,” said NAFCU Vice ...
Post a Comment
Read Complete Article HERE>»

Leasing Set To Surge In 2026?—Credit Unions May Miss Out If They Don’t Move

  CINCINNATI—As credit unions look to revive auto lending in 2026 after a sluggish year, one lending tool may become indispensable: vehicle leasing. With new-car prices still historically high, negative equity rising, and manufacturers fighting for market share, leasing is poised for a major rebound this year—and credit unions that remain on the sidelines risk losing out on strong, recurring loan volume. That’s the message from Scot Hall, executive vice president at  Swapalease.com , who says the economic and market dynamics heading into 2026 are aligning in ways that make leasing not only attractive, but essential. “Prices are up and they’re not coming down anytime soon,” Hall said, noting that inflation, tariffs, supply volatility, and chip-related uncertainty continue to push vehicle pricing higher. “Leasing is a great way to combat that. It’s also a great way to get somebody out of negative equity in a relatively short period of time.” Market Conditions Are Setting the Sta...
Post a Comment
Read Complete Article HERE>»

Happy Fathers Day

From all of us at NCOFCU
Post a Comment
Read Complete Article HERE>»

MyBoardPacket.com Offers Discount to Firefighter Credit Unions

Discount for NCOFCU Members: 25% off MyBoardPacket.com fees (25% off standard fees) Additional Discount for Member CU's Under $50M Asset Size.      Try  DEMO for pricing and indicate referred by “NCOFCU” To receive discount, please use the following form and mention you were referred by "NCOFCU Member Discount " http://www.myboardpacket.com To request a 10 minute demo CLICK HERE and be sure you let them know you heard about them from NCOFCU to receive your discount. Key Features Securely upload & view Board Packets anytime Supports Multiple File Formats Online Voting Archive all past Board Packets Online Discussion View full board calendar, committee schedules & important dates SOC 2 Two Step Authentication High-grade Encryption Free iPad App with Annotation Features MyBoardPacket.com is a practical, online board packet management system that allows businesses of all sizes to securely manage, organize, cont...
Post a Comment
Read Complete Article HERE>»