ac6d5d77de16481cbb59c2299d646a98

Residual Value Insurance

Fri, 21 Jul 2023 05:58:38 GMT

Structuring a Residual Value Insurance Product

companies by managing asset value risk by guaranteeing that if a properly maintained core asset cannot be sold for at least a specified sum (the RVI Sum Insured) at a future point of time, the policy will respond by either buying the asset for the RVI Sum Insured or by paying the gap between the RVI Sum Insured and the best sale price that can be achieved. It is an enormously flexible tool with benefits which range from asset risk mitigation to complex financial objectives related to accounting treatment, capital optimization and cashflow improvement; and

enables a lessor to offer operating lease solutions to their clients where they are not willing or unable to take any or all of the asset part of the transaction. Instead, the lessor buys RVI which underwrites this risk

Types of assets that RVI can be applied to include:

Commercial vessels;
Helicopters;
Fixed Wing Aircraft;
Heavy Plant and Equipment (Yellow Goods/Construction Equipment/Mining Equipment) ;
Rolling Stock - Regional Passenger Trains and Freight Cars;
Other transportation such as Trams, Buses, Coaches and Trucks
Certain types of commercial property in established Financial Centers (Hubs)

It is important to distinguish that residual value insurance covers a clearly defined risk of a loss of an underlying asset's value at the end of a lease contract due to unforeseen market fluctuation.

There are a range of exposures RVI does not cover which includes:

Asset Loss caused by accident or damage
Bankruptcy coverage - Early liquidation
Excessive use breaking the residual value agreement
A lease agreement extension between the lessor and lessee without first notifying the insurer. If it is agreeable an additional premium will be chargeable, but only if that assets have worthwhile remaining period of their lifecycle
Assets which don't have a recognizable secondary market
Almost assets Assets deemed to be consumer assets

Cover periods can range up to 5 to 12 years. As it is deemed appropriate for the asset to have a secondary market, a predetermined remarketing period and remarketing process must be set together with a comprehensive and will documented claims management process which will cover aspects of asset ownership, cash settlement and asset disposal.

As each case or opportunity requiring RVI is generally unique the Underwriting Process can become cumbersome and intensive. Opportunities should only be considered where the:

Client can determine a willingness to seek RVI, rather than mere window shopping. To this end the Client must include transaction cash flows, asset performance history etc.,
A willingness to engage lawyers for policy negotiation and preparation
Final Lawyer review of lease documentation and final value information - both parties

If the client has genuine interest to progress with an RVI Enquiry typically the Underwriter will charge a minimum and deposit premium which will be offset from the overall risk premium if the risk proceeds.

For further information contact Mark Standen, Mocden Insurance Services:

+315 359 6005

+44 (0)1322 476 276

+61 3 638 77 044

Mob: +44 (0)7472 628 886

Mob: +61 (0)490 056 472

Email: mstanden@mocden.co.uk

www.mocden.co.uk

What is a Vehicle Service Contract?

Wed, 19 Jul 2023 11:29:52 GMT

Vehicle Service Contracts or Extended Warranties on Cars, give car buyers additional coverage beyond the factory warranty.

A Vehicle Service Contract (VSC) or Extended Warranty on a Car does not extend the coverage of the original factory warranty, which is included in the car's price. The VSC is purchased separately, and it pays for covered repairs or replacement costs in the event of breakdown or mechanical issue. While car buyers are not required to buy an extended warranty, having the extra coverage can help extend the factory warranty's coverage limits - and save the buyer money in the long run.

Types of VSC or Extended Warranty for a Car

There are two types of Extended Warranty

Original Equipment Manufacturers (OEM): Offered from the vehicle manufacturer, these service plans include extra coverage for a cost on top of the factory warranty. The extended warranty from an OEM often mirrors the coverage provided when the car was brand new, but extends the coverage and mileage length.
Aftermarket or Third-Party Administrator (TPAs): A third-party provider, such as an insurance carrier or warranty company, offers a variety of warranty options that can be customized to the consumers' needs.

What Does A VSC Cover?

VSC's can help car owners avoid unexpected auto expenses for an agreed-upon period and mileage. Each contract is different, so buyers should make sure to review it in its entirety before moving forward. Each warranty will have a list of inclusions and exclusions that breaks down which repairs are covered. VSC's will also detail the types of issues or breakdowns they cover.

Some VSC's also provide additional coverage that includes tire and wheel damage, key fob replacement, dent repair, lease wear and tear coverage, theft protection and more.

How Much Does A VSC Cost?

The cost of the VSC will depend upon several factors: the make, model, condition of the car (used or new), plus the amount of coverage and the length of the contract.

Are VSC's Worth Getting?

When purchased from a reputable company with experience in the automotive industry, a VSC is worth the money for the peace of mind it can offer. Many VSC's are flexible, require no down payment and give the consumer the consumer the ability to cancel at any time.

Many car owners think they have sufficient coverage for any issue with their vehicle because they have automobile insurance. However, automobile insurance and warranties cover different things. Without a VSC, car owners may pay out of their own pocket for certain repair needs, especially those that fall outside of a collision accident.

For more information on the types of coverage including the partners we are able to work with, and the territories we have access to, please contact Mark Standen, Mocden Insurance Services on:

+1 315 359 6005

+44 (0)1322 476 276

+61 3 638 77 044

Mob: +44 (0)7427 628 886

Mob: +61 (0) 490 056 472

Email: mstanden@mocden.co.uk

www.mocden.co.uk

Used Car Market & Vehicle Service Contracts

Wed, 19 Jul 2023 08:02:45 GMT

Used Car Market & Extended Auto Warranties/Vehicle Service Contracts

Supply chain shocks caused by the recent COVID-19 pandemic have left their mark on the supply of both new and used vehicles. With less new stock available Dealerships moved momentum to trading used vehicles. Whilst markets readjust to a new dawn without lockdowns, average used vehicles are up 21% year on year and new cars about 5%. No doubt the markets will realign over time.

While higher used car prices can be good news for buyers looking to get the most for their vehicle trade-in, dealerships are scrambling for inventory and coming up empty-handed, making it difficult for those buyers to purchase the car of their dreams.

Used Cars and Vehicle Service Contracts

Until new car inventory returns to normal levels, the demand for used cars is expected to remain high. And, current owners of used cars may find themselves holding on to their vehicles longer than they initially expected they would.

A consequence of holding a car for several years longer, can mean extra expenses as the inevitable wear and tear begins to happen. Many used car owners may seek options to protect their vehicles - and their wallets - once the original factory warranty has expired to avoid pricey repairs. One option for such protection is the purchase of an extended car warranty or vehicle service contract (VSC).

Are Vehicle Service Contracts Worth it?

Extended Warranties or VSC's can offer peace of mind and help reduce financial stress when a car breaks down. When purchasing a used car from a dealership, buyers are usually offered an extended auto warranty long with various additional coverages like dent and ding repair, tire and wheel repair and windshield repair. The contract will detail how many years the warranty is for as well as what items are covered and which are excluded.

What Does a VSC Cover?

Each VSC is different, so car owners should thoroughly review their contract before moving forward. The VSC will have a list of inclusions and exclusions and a breakdown of covered repairs. In general, some of the items covered by a VSC include:

Transmission and engine systems
Exhaust system
Steering system
Heating and air conditioning
Drive train
Pumps, alternators and manifold

Most VSC's exclude items such as routine maintenance, tune0ups, brake pads, spark plugs and filters.

For further information on auto extended warranties and vehicle service contracts including the partners we work with which are Insurers and Administrators including the territories we work in please contact Mark Standen, Mocden Insurance Services on:

+1 315 359 6005

+44 (0)1322 476 276

+61 3 638 77 044

Mob: +44 (0)1322 476 276

Mob: +61 (0)490 056 472

Email: mstanden@mocden.co.uk

www.mocden.co.uk

What is Home Warranty

Wed, 19 Jul 2023 07:09:03 GMT

The Benefits of a Home Warranty

A home warranty covers the cost of repairing home appliances and utility systems if they breakdown. Home warranties offer homeowners the financial protection and safety of knowing that unexpected problems with their appliances and critical systems, such as HVAC, electrical and plumbing, can be dealt with without large out-of-pocket expenses.

Home warranties offer some definite benefits to homeowners, including peace of mind and a sense of security. A feww additional benefits include:

Saving money on expensive repairs . Homeowners will typically pay less overall for repairs and replacements, especially when expensive appliances and utility systems are involved. Home warranties offer protection from unexpected, surprise repair costs.
Access to skilled service contractors. Home warranty companies utilize a network of service contractors that can be dispatched for repairs in the event of a claim. This is helpful for homeowners who might not be handy or those who do not have a regular contractor.
Coverage for breakdowns from normal wear and tear . On average, consumers place two and a half claims per year, and over half of homeowners had a home repair emergency in the past 12 months.

It's important to note exclusions can lead to claim denials. If coverage is denied, the homeowner must pay the service call fee and pay for any necessary repairs. Home warranties also do not cover "improperly maintained" items - and the warranty company has the discretion to define what that means - and items with pre-existing condition also are not typically covered. Extensive damage could mean out-of-pocket expenses for the homeowner, or the warranty may only cover repairing items rather than fully replacing them.

How Does a Home Warranty Work?

Homeowners pay a monthly or yearly premium to maintain their home warranty coverage. When a covered item on the home needs to be serviced, repaired, or replaced, the homeowner submits a claim to the administrator of the program. The administrator takes the call and determines the next steps. A licensed and insured service provider is then dispatched to the home to investigate and, when needed, provides repair or replacement to resolve the claim. In this process, the homeowner is protected from paying for the unforeseen costs related to the breakdown. Some programs may require the homeowner to pay a small deductible depending on the coverage.

What Does a Home Warranty Cover?

A home warranty generally offers coverage for major systems and appliances throughout the house. However, it does not cover structural features and doors or windows.

The coverage varies by company and plan, but a typical home warranty can cover any of the following:

Heating, ventilation and air conditioning system (HVAC)
Gas line
Electrical system (interior or exterior)
Plumbing and drainage system
Water service line
Sewer/septic system
Water heater
Appliances, such as fridge/freezer, stove/oven/range, built-in dishwasher, built-in microwave, garbage disposal, built0in trash compactor
Washer and dryer
Garage door opener
Coverage for pools, spas, well pumps
Smart thermostats
Surge coverage

In the event that a major repair or replacement item is needed, such as an HVAC system (if covered), costs can range anywhere from $5,000 to over $12,000 to replace.

For further information on the solutions we can provide which include both the Administrator and Insurer please contact Mark Standen, Mocden Insurance Services:

+1 315 359 6005

+44 (0)1322 476 276

+61 3 638 77 044

Mob: +44 (0)1322 476 276

Mob: +61 (0)490 056 472

mstanden@mocden.co.uk

www.mocden.co.uk

CHOOSING WHICH EXTENDED SERVICE CONTRACTS ARE RIGHT FOR YOU

Tue, 18 Jul 2023 07:01:44 GMT

CONSTRUCTION EQUIPMENT WARRANTIES EXPLAINED

Things go wrong, even when construction equipment is well-cared-for and always operating within spec. The only thing predictable about machine repairs is that they will be expensive. Extended service contracts seamlessly continue protection for an existing machine that will soon age out of its original equipment warranty, and they protect newly-purchased used equipment.

Extended warranties cover real-life situations

A used excavator recently purchased from your construction equipment dealership breaks down on the customer's job site. Their project is delayed, costing them precious work time as well as frustration and hassle while you scramble to deliver a rental machine to get them back up and running with least downtime. Hopefully you have a rental available. And hopefully your customer has funds set aside to get his excavator back on the job as quickly as possible.

Encouraging your used equipment customers to outfit machines with extended service contracts protects them in instances like this. Instead of having to set aside large sums of money to create a repair fund, they simply pay a monthly premium. Cash for repairs is always there if it's needed, yet your customer's outlay is significantly reduced and they can conserve their capital to use for more profitable business-building purposes.

Your dealership needs similar protection. Any time a piece of rental equipment is out of service, it's unavailable to earn revenue. Extended service contracts that cover your rental fleet ensures you always have resources to effect repairs right away and get machines back into service, reducing your exposure to this type of income loss.

For you and your customers, the key is choosing the right extended service contract.

Typically, used construction equipment warranties offer three levels of coverage:

Powertrain
Powertrain + Hydraulics
Full Machine

The greater the coverage, the higher the premium, of course. So choosing the most valuable, cost-effective option depends on how often you use this particular piece of equipment and under what conditions. The more the machine works, or the more difficult conditions, the more likely something will break or wear out before its time.

You should weigh both costs and benefits, because choosing inadequate extended coverage won't provide the protection you need.

A powertrain warranty goes right to the machine's heart, typically covering the engine, power transmission and drive systems, plus vibratory components, swing gear assembly and electrical system. You need at least this much coverage.
A powertrain + hydraulics warranty adds coverage for hydraulic systems that are operationally critical for many types of construction equipment. For those machines, a powertrain-only warranty will leave you in the lurch if it's only a hydraulics problem that causes your equipment to break down.
Full machine coverage includes powertrain and hydraulics plus numerous parts needed due to other types of mechanical breakdown - steering, brakes, air conditioning, etc. Considering that a powertrain + hydraulics warranty covers 90-95% of what you get with full coverage, this could be overkill. On the other hand, for the equipment you use most often or under especially tough conditions, full coverage may well be your most-effective option.

Know what you're getting,

Read the terms and conditions to know exactly what is included and what is not. Typically, costs for things like onsite work and equipment transportation are not covered, but often you can add coverage to pay for these things. Note that, like OEM warranties, every extended warranty covers your machine for a specific number of service hours and/or time period. That's why it's so important to factor in frequency of usage when evaluating coverage options.

Knowing how to choose will help you make better informed decisions about extended service contracts for your rental fleet, an it will make you a more valuable working partner for customers, as you help them make the best coverage decisions regarding their construction equipment, too.

For further information contact Mark Standen, Mocden Insurance Services. We can provide worldwide solutions.

+1 315 359 6005

+44 (0)1322 476 276

+61 3 638 77 044

Mob: +44 (0) 7427 628 886

Mob:+61 (0) 490 056 472

Email: mstanden@mocden.co.uk

www.mocden.co.uk

Is Generator Warranty Worth the Money

Tue, 18 Jul 2023 02:23:29 GMT

Is Generator Warranty Worth Your Money - Here's everything you should know

Tired of the ongoing energy outages? It's time to invest in a generator to keep your business running at full speed and avoid loss of revenue.

Power outages have a tremendous impact on your business, and one of the best ways to combat these issues is by investing in a generator. However, with the heavy use of generators comes the added expense of repairs and maintenance .

The prospect of replacing an expensive generator component or the entire machine is daunting because it means expensive services and downtime that can lead to business losses. That's why it's a good idea to get a reliable generator warranty that covers all the repairs, defects, and maintenance form the date of purchase until the warranty expires.

So, before you run out and purchase the largest model you find for your business operations, it's worth understanding why warranties work for mechanical equipment .

GENERATOR WARRANTY CONSIDERATIONS

Simply put, generators are a great solution for meeting power requirements and keeping a backup of electricity. But powerful protection plays a vital role in its longevity and efficiency for your business.

These machines are huge investments, and you must maximize their value. The right warranty helps you do just that. It ensures peace of mind that your business operations continue smoothly in case of breakdown or power failures for years to come.

Bear in mind, the type of warranties your generator has depends on the manufacturer and the model. Moreover, what warranty covers also depends on the unit, but generally, it includes coverage for failures resulting from defects or faults in the unit's materials or workmanship.

In other words, it covers everything beyond your control. But remember, failures and defects must be within the duration of the warranty period , not after that, as the warranty won't cover the claim.

GENERATOR WARRANTY PROTECTION

Coming to the question, what does it really protect? Well, generator warranties are designed to cover major components of the generator that could encounter problems, defects, or even need replacement.

In a nutshell, a generator warranty not only protects investment and bottom line but also covers damages resulting from engine parts failure, structural changes, control panels, and other factors.

Besides this, one must be aware of failures that aren't covered by the warranty, for which the business owner must read the terms and conditions properly. In general, the warranty doesn't cover:

User neglection or abuse of the generator
An accident due to carelessness like dropping of the generator
Damage caused by a bad repair job
User not operating the generator as instructed by the manufacturer
Damage of failure caused by a component

GENERATOR WARRANTY PTOGRAM BENEFITS

Undeniably , the generator is a big investment and a necessity for businesses these days. But it's also a means of having backup electricity in terms of power outages and inconveniences caused by a power shortage. It's the time to ensure that your always have the means to power your business by investing in a warranty plan . Here's why:

Lowers the risk of unexpected failure costs going beyond the standard warranty
Minimizes downtime
Repairs by factory-trained technicians and genuine parts
Technical assistance availability
Protection against rising labor, travel, and parts costs

WHAT HAPPENS WHEN WARRANTY EXPIRES

One of the top concerns is the lack of warranty support once the standard warranty expires. During the warranty months, you can rest assured your manufacturer can provide the necessary support that your generator demands.

Extended warranty plans are the perfect solution and in that case as they cover repairs and servicing even beyond the standard warranty period.

A simple question has a simple answer - partner with a reliable extended warranty company that continues to deliver protection.

GENERATOR WARRANTY PLAN FOR BUSINESS - CONTACT MOCDEN INSURANCE SERVICES

Ready to add years to your generator life with a warranty plan ?

Just like insurance for your home or car, a warranty for your generator protects it against failings and saves money, time, and most importantly, stress.

If you are looking for a reliable warranty for your generator, get in touch with Mocden Insurance Services:

+1 315 359 6005

+44 (0)1322 476 276

+61 3 638 77 044

Mob: +44 (0)7427 628 886

Mob: +61 (0)490 056 472

Email: mstanden@mocden.co.uk

www.mocden.co.uk

We stand behind our comprehensive warranty plans developed exclusively to protect your investment . Reach out today to learn how we can help you secure your investment.

Benefits of Aftermarket Warranty Programs for Used Equipment

Tue, 18 Jul 2023 01:26:39 GMT

Go From No Coverage To Coverage

BENEFITS OF AFTERMARKET WARRANTY PROGRAMS FOR USED EQUIPMENT

If you sell used construction equipment, you will want to consider offering your customers aftermarket warranty programs. These extended coverage programs provide unique perks to used equipment owners, which helps you give even more value to customers.

We've gathered up key advantages of aftermarket warranty programs for your used equipment customers. If you have questions or want to discuss options please contact Mocden Insurance Services and we will liaise with our partners to assist you.

GO FROM NO COVERAGE TO COVERAGE

When customers purchase a new piece of heavy equipment, there is usually a standard warranty included. This can be offered by the OEM or dealership, but either way it almost always comes with an expiration date. After a certain number of miles or hours, the included warranty is no longer valid. The warranty may also not be able to transfer from one owner to the next.

The end result? Customers who buy used equipment are usually left without any warranty coverage. That's where aftermarket warranty programs enter the picture.

With an aftermarket warranty program, used equipment owners can get valuable coverage that they would otherwise lack.

MAKE THE SHOPPING DECISION EASIER

There are many used equipment dealerships out there, but not all of them offer aftermarket warranty programs. This added service can make the customer's buying decision easier. When choosing between a used equipment dealership that offers aftermarket warranty programs and a company that does not, the decision is easy!

Customers typically go with the company that offers more, even if they don't end up purchasing the aftermarket warranty program. Offering your customers aftermarket warranty programs is a great way to boost your value and reputation, which can lead to more customers and more return customers .

COUNTERACT THE COSTS OF REPAIRING USED EQUIPMENT

By its very nature, used equipment will be facing normal wear and tear. These models have already been in use, which means they are closer to needing maintenance than their new counterparts. Customers can be apprehensive about the risk of unexpected and expensive repairs, which is higher among used equipment. The solution? They can get an aftermarket warranty program.

The exact details of coverage depend on the situation, but they will usually cover these exact unexpected repairs that customers can worry about. Customers can alleviate their concerns with an aftermarket warranty program, which gives them valuable peace of mind about making their used equipment purchase.

Ready to discuss aftermarket warranty programs? Contact Mark Standen, Mocden Insurance Services:

+1 315 359 6005

+44 (0)1322 476 276

+61 3 638 77 044

Mob: +44 (0)7427 628 886

Mob: +61 (0)490 056 472

Email: mstanden@mocden.co.uk

www.mocden.co.uk

Top Reasons To Add Extended Warranties

Tue, 18 Jul 2023 00:27:40 GMT

Should you buy extended warranties for construction equipment?

Should you buy extended warranties for your construction equipment? The answer is probably yes, but it's up to you to weigh the pros and cons. Here are some of the top reasons an extended warranty can be a great investment:

CUSTOMIZATION

Every business has different challenges, different budgets and a lineup of heavy equipment . Extended warranties can be tailored to fit to your company needs, machine by machine. If you work with one of our partners, for example ADI's Protect My Iron which is underwritten through Lloyd's you could choose coverage for:

Engine only
Component only
Engine, power transmission and drive systems
Engine, power transmission, drive systems and hydraulic systems
Engine, power transmission, drive systems, hydraulic systems, vibratory components and swing gear assembly.

PROTECT YOUR CASH FLOW

Maintain maximum cash flow for greater business flexibility, rather than setting aside "just in case", taking that cash out of play for capital improvements, marketing, etc.

PREDICTABILITY

The cost of extended warranties premiums is known and consistent, whereas a sudden significant expense can throw the proverbial monkey wrench into your business plans.

REDUCED STRESS

We could all use one less thing to worry about. There is no guarantee that even the best-cared-for equipment won't break down, but if the worst happens, an extended warranty ensures you are fully prepared to handle the problem as efficiently as possible.

SAVINGS

If something does go wrong, the cost will be covered.

FACILITATE REPAIRS

Having an extended warranty in place can streamline the repair process. Coverage includes parts and labor , and you can be confident the work will be done by your usual, trusted dealer and their top-notch service and repair techs.

INCREASED RESALE VALUE

An extended warranty augments the machine's maintenance records to show the equipment has been routinely well-cared for, increasing buyer confidence. An existing warranty also adds real value to the machine.

Construction firms from owner/operators to the biggest names in the industry have to be agile and operate cost-effectively in order to remain in business. With so many critical details to consider on a daily basis, extended warranties can help lighten the load.

For further information on extended warranties please contact Mark Standen, Mocden Insurance Services

+44 (0)1322 476 276

+1 315 359 6005

+61 3 638 77 044

Mob +44 (0)7427 628 886

Mob +61 (0)490 056 472

Email mstanden@mocden.co.uk

www.mocden.co,uk

Independence of Mocden

Mon, 17 Jul 2023 13:15:55 GMT

Mocden has an international reach.

Mocden has been in formation since 2012 and works with:

Lloyd's Underwriters
Insurance Companies
Lloyd's Brokers
Third Party Administrators
Managing General Agents
Introducers
Distributors/Entrepreneurs

It works on a success fee basis and picks its partners akin to a Dragon's Den environment, where it is equally as motivated as its chosen partner in securing desirable end goals.

Mocden will:

Assist with product design/pricing and contract formation
Scoping out reporting acceptable to insurers and maintaining data
Co-ordinating and assisting with the operational flow of business to Lloyd's Underwriters or Company Underwriters via and through the approved broker/Lloyd's broker

Business enquiries or opportunities are invariably start-ups and relate to warranty (auto, heavy plant and equipment and brown and white goods), gap, road hazard and appearance protection, involuntary unemployment insurance, and buy back guarantees

Mocden has particular experience of structuring these programs from ground up particularly for new business opportunities and start-ups. This experience is essential particularly where management reporting has to be implemented from scratch and key performance measures set and continuously measured.

Since 2012 we have supported opportunities in the following regions/areas:

New York - USA

Syracuse - USA

Orlando - USA

Indiana - USA

Kentucky - USA

Michigan - USA

Illinois - USA

Quebec - Canada

Toronto - Canada

Vancouver - Canada

Kiev - Ukraine

London - UK

Dubai - UAE

Kuala Lumpur - Malaysia

Singapore

NSW - Australia

In the event of start-ups we will take a proactive role in business plans providing valuable input into compliance and regulatory regimes, drafting wordings and contracts, pricing and assessment of risk, operations and claims management, report writing and market research and development of new product ideas.

We offer a step 5 critique to key proposals:

Step 1 - Initial Dialogue - What are we trying to achieve? How can we progress?
Step 2 - Consider appropriateness of NDA's and share preliminary information.
Step 3 - Set out a road map and consider achievable goals. Are client expectations realistic?
Step 4 - Evaluate and recommend - critique business returns.
Step 5 - Preparation of the Underwriting Submission for the attention of Underwriters.

For further information please contact Mark Standen:

+44 (0)1322 476 276

+1 315 359 6005

+61 3 638 77 044

Mob: +44 (0)7427 628 886

Mob: +61 (0)490 056 472

Email: mstanden@mocden.co.uk

Understanding Down Payment Guarantee

Mon, 17 Jul 2023 11:35:35 GMT

Down Payment Guarantee

Down Payment Guarantee protects the customer against the loss they will incur in the event of an incident leading to a total loss to their vehicle.

Their primary motor insurance pay-out, following a total loss will generally be based on the Actual Cash Value (ACV) at the date of loss as listed by the National Automobile Dealers Association retail value.

This loss leaves the customer with a difference between the insurance pay-out and the cost of a subsequent vehicle replacement. To purchase another car the customer will have to pay the difference if they do not have down Payment Guarantee.

With Down Payment Guarantee in the event of a claim, the Authorized Dealer will provide the customer with a credit for this difference against their next vehicle purchase.

How does it work?

Down Payment Guarantee provides the customer with protection for their subsequent vehicle replacement for the term of cover they have selected, but not exceeding five years.

In the event of a total loss to their vehicle the cover they have purchased guarantees to provide them with a credit that when added to their total loss pay-out from their primary motor insurers will enable them to purchase a subsequent replacement vehicle of similar invoice value to what they paid for originally.

The above table assumes the customer has purchased their vehicle today for $25,000.

The figures on the BLUE LINE represent the likely pay-out the customer will receive from their primary motor insurer in accordance with the ACV.

The amounts inserted just above the RED LINE illustrates the shortfall they will suffer as a result of vehicle depreciation in accordance with the likely ACV value over time.

This program can be structured as a waiver.

For further information contact Mark Standen, Mocden Insurance Services

+44 (0)1322 476 276

+1 315 359 6005

+61 3 638 77044

mob: +44 (0)7427 628 886

mob: +61 (0)490 056 472

Email: mstanden@mocden.co.uk

Extended Warranty

Mon, 17 Jul 2023 07:09:55 GMT

An Extended Warranty is most commonly provided as an extension to the Original Equipment Manufacturer's Warranty

A warranty is a guarantee or promise provided by the OEM to repair or replace it, if necessary, within a specified period of time following an electrical or mechanical breakdown. It may though normally won't provide cover for peripheral items, wear and tear, damage by computer viruses, re-grassing, normal maintenance, accidental damage or any consequential loss.

The most common forms of extended warranty are:

Extended Auto Warranty - An extended auto warranty is a service contract between the owner of the vehicle and an auto warranty provider, the latter which may either be the original equipment manufacturer or a third party administrator. Such relationships may not have to be evidenced by insurance contracts, particularly where the extended warranty crystalizes an existing obligation. All new cars come with a warranty that cover repairs for a certain period of time and a certain number of miles, such as 3 years and 36,000 miles. At the time of sale, auto dealers may sell car buyers an extended warranty which extends the period of the warranty of an above the initial OEM period.

Household Appliance Warranty (commonly referred to as Brown and White Warranty) - An extended Warranty on Brown and White Appliances covers repair costs following breakdown. Most coverage includes the costs of parts and labour. There is usually a maximum amount payable during the term of cover and some limits apply per claim. If the appliance cannot be repaired some coverages will replace the appliance with a new one of similar specification, or pay a cash equivalent if a similar model is no longer available. These are often called "new for old". Other coverages will make good up to the current value of the appliance after depreciation. If any appliance is replaced the coverage will usually end. Where additional coverage in the form of accidental damage or frozen food spoilage the coverage is deemed to be insurance.

Mobile Phone/Electronic Equipment Cover - These types of cover generally extends the period for which the customer is entitled to to a repair or replacement of their electronic equipment (i.e. mobile phone, handheld device etc) and can extend cover for up to 90 days whilst the customer is abroad. Typically the electronic item must be less than 12 months old with a valid proof of purchase. The cover provides protection for repair or replacement costs if the underlying electronic equipment is damaged as a result of an accident, theft or electrical mechanical breakdown that occurs outside the manufacturer's guarantee period. The inclusion of theft will deem the coverage to be insurance.

For further information contact Mark Standen, Mocden Insurance Services:

+44 (0)1322 476 276

+1 315 359 6005

+61 3 638 77 044

Mobile +44 (0)7427 628 886 or +61 (0)490 056 472

Email: mstanden@mocden.co.uk

Guaranteed Asset Protection

Mon, 17 Jul 2023 06:13:25 GMT

Guaranteed Asset Protection - provides benefit in the event a customer has suffered a total loss under their primary motor insurance.

Gap Cover provides benefit in the event that a customer has suffered a total loss under his primary motor insurance. There are a number of variants to this type of cover, but broadly it provides shortfall protection following a total loss to an auto vehicle, covering the difference between the cost of the replacement vehicle versus the original vehicle or the remaining amount outstanding under a finance contract after an insurance pay-out

Variants include:

Original Invoice Protection or Return To Invoice - pays the difference between the amount paid by the underlying primary motor insurer and the original invoice price of the insured vehicle.

Vehicle Replacement - pays the difference between the amount paid by the underlying primary motor insurer and the purhcase price of a new vehicle of a similar make or model.

Financial Shortfall - pays the difference between the amount paid by the underlying primary motor insurer and the outstanding finance on their vehicle.

Add-ons and further coverages include:

Excess Loss Gap (Deductible Reimbursement) - reimburses the insured for the deductible on their underlying motor insurance policy in the event of either a total or partial loss;
Rental Vehicle Extension - All losses - pays the insured a fixed daily amount towards the cost of a rental car provided the insured has loss of use coverage following a partial or total loss;
Enhanced Limited Depreciation on Used Vehicles - pays the difference between the depreciated value of the vehicle (the write off value) and the original purchase of the vehicle, plus 5% per year;
Genuine Body Parts Reimbursement - Partial Losses - provides $10,000 per year towards the purchase of new manufacturer supplied replacement body parts in the event the vehicle is damaged due to a collision or comprehensive claim. Coverage is limited to a period of 3 years for vehicles for new current model years, and 2 years for new preceding model year vehicles.
Deposit Gap Insurance - allows the customer to enter into a finance agreement for the purchase of a vehicle where they do not have the down payment. Cover steps in when the customer fails to meet his committed loan repayments or the vehicle is voluntarily repossessed;
Default Gap Insurance - in the event the customer misses 3 monthly instalments of an unsecured loan following involuntary unemployment, disability or marital breakdown and the Debtor has exhausted all means of recovery pays the lesser of 105% of the purchase price of the vehicle or the amount owed to the Debtor;
Smart Gap - pays a fixed amount following a theft of a vehicle which is not covered within 30 days. Usually offered to enhance the product offerings of any devices or other technologies to prevent theft
Scratch and Dent Cover - pays the cost if parts and labour to the vehicle in the event of accidental damage to the bodywork or alloy wheels of the vehicle. It covers minor body chips and scratches, scuffed bumpers, ding and dent removal, alloy wheel scuffs. Cover periods run out to 12, 24 and 36 months.

For further information on coverages and or Underwriting Support please contact:

Mark Standen, Mocden Insurance Services

+44 (0)1322 476 276

+1 315 359 6005

+61 3 638 77 044

Mob + 44 (0)7427 628 886 or +61 (0)490 056 472

Email: mstanden@mocden.co.uk

About Mocden Insurance Services

Mon, 17 Jul 2023 02:18:12 GMT

Independent Insurance Consultants - Working With Underwriters and Third Party Administrators.

We have been independent since 2012 and continue to work with regulated insurance brokers, third party administrators and insurance underwriters designing and scoping out a variety forms of coverages across the globe.

In this post we thought it useful to outline the typical structures and types of coverage we have assisted in underwriting during this time.

Structures can depend on the nature of the risk and the regulatory hurdles:

is the Underwriter admitted to underwrite business in that territory? If yes the regulatory path is clear and the nature of a regulated activity will be defined in accordance with local insurance codes; or
if the Underwriter is not admitted to underwrite business in that territory they may be able to participate in the risk through reinsurance - in this case the local regulated insurer assumes the regulatory burden; or
in the case of the USA a Surplus Lines Insurance Broker can place the business with a Surplus Lines Insurer for which Lloyd's is regulated as a Surplus Lines Insurer in all 50 states; and
examination at the point in the contract where risk transfer occurs. To this end regulatory requirements can be simplified where the customer facing exposure is not insurance but instead a warranty or service contract. An insurance contract can be drafted to indemnify an Administrator, Dealer or Distributor against claims they receive from underlying customers on the warranty or service contracts.

The explanation under Point 4, may sound a little complicated, but clearly drafted contract could define parties as:

Insurer and Administrator (the Insured), whereby the former indemnifies the latter for warranty contract exposures
Administrator and Dealer, whereby the former provides the dealer with an indemnity for warranties it sells to its customers

The advantage of this structure reduces the flow of insurance contracts to only one which typically is a Contractual Liability Insurance Policy. Local regulatory requirements regarding point of sale disclosure will be restricted to one contract and will involve two parties both defined as commercial entities, rather than any party being determined as a retail customer.

There are further advantages when you look at the Underwriters return on deployed capital. Whilst every Underwriter will have slightly different ways in measuring returns on deployed capital, the risk is only booked as an insurance contract at the point of risk transfer.

In the case of a conventional insurance contract provided to a retail customer this will be at the point the insurance policy is provided to the customer, inclusive of all underwriting, administration and distribution costs. Whereas with a service contract or warranty these costs will most likely be restricted to underwriting and the minimal distribution costs of wholesale insurance broker needed to issue the Contractual Liability Insurance Policy and collect applicable insurance premium tax.

This can have the advantage of restricting distribution costs to between 5% - 10% of the Underwriters Premium versus 50% to 80% of the Underwriters Premium. In the short this enables the Underwriter to write the business at increased profit margin or to reduce their risk premium.

We are always at hand to explain these structures in greater detail and recommend them where they fit.

We have the ability to reach out to Underwriters who can offer solutions in:

North America - USA and Canada
UK
Europe
Middle East
Far East
Australasia

We have worked with our network of Underwriters on the following programs:

Extended Warranty - Auto Vehicles
Extended Warranty - Heavy Plant & Equipment
Extended Warranty - Generators
Warranty - OEM Parts Warranty, Rental Vehicle Indemnity and Deductible Reimbursement
Buy-Back Guarantees - Residual Value Insurance
Job Loss Protection
Road Hazard on Auto Vehicles- Tires, Appearance Protection, Ding and Dent and Key Protection
Road Hazard on Recreational Vehicles- Tires, Appearance Protection, Ding and Dent and Key Protection
Extended Warranty on brown goods that are relatively light electronic appliances such as computers, radios, audio equipment, televisions and handheld devices and white goods such as major appliances like washing machines and refrigerators and small appliances such as toasters, coffee machines and blenders
Guaranteed Asset Protection - Auto Vehicles
Yacht Insurance

For further information and a confidential discussion please contact Mark Standen:

+44 (0)1322 476 276

+1 315 359 6005

+61 3 638 77044

+44 (0)7427 628 886

+61 (0)490 056 472

OEM Parts & Deductible Reimbursement

Sun, 16 Jul 2023 23:56:54 GMT

Original Equipment Manufacturer's (OEM) Body Parts Indemnity

Designed to cover new vehicles OEM Body Parts Indemnity is triggered in the event of an accident that causes direct loss or damage to a Warranty Holder's Vehicle.

It indemnifies the Warranty Holder by paying the difference between the cost of using OEM body parts to repair the Vehicle compared to the cost of using non-OEM body parts to repair the Vehicle, provided:

the Primary Auto Insurer is not obligated to use OEM body parts to repair the Vehicle and
the Primary Auto Insurer has made a written offer to repair the Vehicle using non-OEM body parts

In the event OEM body parts are not available, the Warranty Holder will be assumed to receive the benefit of using body parts of like quality to those used or recommended by the manufacturer of the vehicle.

Cover is provided for the term of the contract which can last for up to 60 months and the benefit provided in any 12 month period is up to:

ten thousand dollars ($10,000) for parts and
two thousand dollars ($2,000) for labour.

Components included in coverage are:

exterior body parts,
panels,
glass,
suspension parts,
tires,
rims and mags,
axles,
radiators and
air conditioning condensers

In order to mitigate customer stresses, cover provides:

Deductible reimbursement benefit whereby the Warranty Holder will be indemnified for up to six hundred dollars of their deductible under their primary auto insurance policy. This protection lasts for the term of coverage and can be claimed each time a qualifying claim has been settled by the primary auto insurer; and
Rental Vehicle Indemnity which is designed to step in once the Rental Vehicle Cover under the Primary Auto Insurance Policy is exhausted. Rental Vehicle cover contributes up to fifty dollars ($50) per day, and up to a maximum of one thousand dollars including taxes.

Depending on the territory, coverage can be provided as a warranty not an insurance contract

For further information contact:

Mark Standen

+44 (0)1322 476 276

+1 315 359 6005

+61 3 638 77 044

Mobile:

+44 (0)7427 628 886

+61 (0)490 056 472

Email: mstanden@mocden.co.uk

Involuntary Unemployment Protection

Sun, 16 Jul 2023 08:29:00 GMT

Protecting committed debt repayments against the risks of involuntary unemployment.

Unforeseen systemic shocks such as the credit crunch 2007/2008 and the Covid Pandemic 2019 to 2021 can create anxious moments as consumers face the daunting prospect of having to meet committed financial repayments, at the time of ever increasing uncertainty following the loss of a job and the resultant loss of income following that job loss.

Job Loss Protection Insurance provides a Credit Enhancement Program to the Provider of the finance and or the underlying goods and services

Job Loss Protection Insurance can provide a layer of protection against delinquent payments due to involuntary economic loss of employment income threatening future expenditure patterns. Depending on the underlying goods or services being protected Job Loss Protection can minimize delinquencies and provide some form of cash flow protection.

Using Job Loss Protection Insurance as a credit enhancement tool means that a Distributor can advise their customers that they will receive protection for their committed monthly repayments should they become involuntary unemployed. The period of protection will depend on the plan type and the period of cover selected.

Mandatory Job Loss Protection Insurance

Job Loss Protection Insurance is designed to be offered to all customers forming part of a particular consumer segment. This approach to distribution affords the Underwriter with an equal mix of all risks, it also severely minimizes the possibility of adverse selection, i.e. cover only being offered to customers presenting the worst risk profile.

Enhancement of the Product Offering

Job Loss Protection Insurance protecting committed debt repayments can be very appealing to:

Mortgage Providers
Unsecured Lenders
Credit Card Providers
Motor Manufacturers
Telecom Providers
Energy/Utility Companies
Motor Distributors
House Builders
Educational Care Product Providers
Retailers
Affinity Groups

Particularly as it allows the above to increase more sales of their core product offerings

Coverage can be offered to all persons who at the effective date (start date) or cover are "Gainfully Employed" and over the age of 18.

"Gainfully Employed" means full-time employment for wages, salary, or other monetary reward and working a minimum of thirty (30) hours each work-week. "Gainfully Employed" does not include self-employment income, contract hire (1099 income), barter-for-trade compensation such as room and board, or any other non-monetary payment.

Coverage Terms can vary from 12 months to 36 months, and provide from 3 to 6 months benefit any one claim. A re-qualifying period, where applicable, of twelve weeks gainful employment must be observed before a customer can reclaim under the cover.

Coverage Benefit is constructed to protect the customer's scheduled monthly account payment, and will continue until the customer is no longer involuntarily unemployed or the maximum number of payments has been paid for job loss occurrence of the State or local unemployment or government agency stops paying benefits.

At the start of cover a vesting period is applicable, which means a time period where claim occurrences made are not covered.

Protection for customer scheduled monthly account payments up to $2,000 can be considered.

Working With Clients to Deliver Brand Enhancement

Job Loss Protection Insurance provides a safety net apart from state or government assistance. When built into an existing product this can create a significant marketing edge over competitor offerings. An increased market awareness of a product enhanced by involuntary unemployment protection can lead to more sales and more profit.

Design

At Mocden we recognize that a willingness to design Job Loss Protection may be contingent on the:

image or message an organization is trying to create regarding its brand; and
the market segment is seeks to reach out to; and
the available marketing budget it has and seeks to allocate per branding initiative.

It acknowledgement of some of the above factors, it is possible to vary and even reduce the level of cover if cost is an obstacle.

For further information contact:

Mark Standen, Mocden Insurance Services

+44 (0)1322 476 276 (UK)

+1 315 359 6005 (USA - Newark)

+61 3 638 77 044 (Australia - Melbourne)

mstanden@mocden.co.uk

Ironbound Warranty

Sun, 16 Jul 2023 02:11:36 GMT

Extended Service Contract Warranty

We work exclusively with a specialist Third Party Administrator providing Extended Warranty Coverage solutions for Original Equipment Manufacturers and Equipment Dealers on a world wide basis. The facility we at Mocden have set-up, accesses Underwriting Capacity from the London insurance Market providing total insurance backed or reinsurance solutions and our specialist TPA can provide front end online warranty registrations, back end claims registrations and claims administration.

The facility has been in place since 2013 and together with our TPA Partner we have scoped out pricing, coverage and a full suite of Management Information Reporting.

Coverage can be provided on:

New Equipment Extended Warranty - standard terms up to 5 years and 10,000 hours, effective on the first day following the expiration of the manufacturer's standard factory warranty. Coverage options include Powertrain, Powertrain Plus or Premium Protection, which is the most comprehensive coverage; and
Used Equipment Protection - standard terms up to 24 months and 7,000 hours. We can customize programs and consider machines up to 10 model years old and less than 7,000 hours on the odometer at the date of purchase. Coverage options include Powertrain or Powertrain Plus
Generators - standard terms up to 24 months and 10,000 hours. Programs can be customized and pricing options provided for machines in Standby (Intermittent Use) or in Prime Power (Continuous Use).

Equipment Covered includes:-

Components Programs:
Engines
Transmissions
Planetary/Differentials/Axles
Pumps/Motors/Valves
Custom Select Components

Rebuild Programs:
Complete Machine Coverage
Manufacturer Programs
Dealer Rebuild Programs
Custom Rebuild Programs
Certified Equipment Programs

Agricultural & Utility:
All Terrain and Utility Vehicles
Cane Harvesters
Commercial Mowers
Compact and Utility Tractors
Cotton Harvesters (Cotton Pickers)
Grain Harvesters (Combines)
Grading Equipment
Generators and Power Units
Forage Harvesters
Harvesters (Other)
Implements
Loaders
Mowers
Pumps
Sprayers
Swathers
Sod Harvesters
Speciality Harvesting Equipment
Select Attachments
Tracked Tractors and Vehicles
Utility Terrain Vehicles (UTV)
Wheeled Tractors

Heavy Construction Equipment:
Articulated Dump Trucks
Asphalt Milling Machines
Asphalt Paving Machines
Attachments
Backhoe Loaders
Boom Mowers
Brooms
Compaction Equipment
Concrete Paving Machines
Concrete Pumps
Directional Drills
Dozers
Excavators
Haul Trucks
Material Transfer Vehicles
Motor Graders
Pavement Maintenance Equipment
Power units/Generators/Light Towers
Rebuilt Equipment
Road Wideners
Screen and Crushers
Skid-steer loaders
Speciality Equipment (Custom)
Stabilizers
Sweepers
Track Loaders
Trenching and Boring Equipment
Wheel Loaders

Material Handling Equipment:
Aerial Lifts
Aerial Work Platforms
Air Compressors
Airport Maintenance Equipment
Boom Trucks
Bucket Trucks
Cranes (Mobile)
Forestry Equipment
Forklifts (All Types)
Golf carts and Personnel Carriers
Landfill Equipment
Light Towers
Personnel Carriers
Power Generation Equipment
Platform Trucks
Pumps
Railway Equipment
Specialty Loaders
Specialty Material Handlers
Specialty Tow Trucks
Telescopic Handlers and Loaders
Truck Mounted Cranes
Truck Mounted Utility

Factors we take into consideration when we consider putting together a warranty program:
Make up, volume and mix of Unites to be covered
Appliance Application
Geography
Expectation of Hour Usage
Level of coverage and term of cover requested
Management of the Claims Process

For further information please contact Mark Standen on:

UK +44 (0)1322 476 276

USA +1 315 359 6005

Australia +61 3 638 77 044

or via email to mstanden@mocden.co.uk

Buy Back Guarantees

Thu, 13 Jul 2023 06:46:53 GMT

New Inventory

Heavy Plant Equipment Inventory

In stretching times not all businesses will be willing to invest in new inventory. Decision making will be affected by the underlying economic certainty or uncertainty based on past, present and predicted future performance. None of this is made any easier by the range of economic commentaries or the "unknowns" which can lurk on the horizon in the form of shocks to "chip" supply chains and inflationary pressures as a result of pent up demand.

So how can you create a better environment to induce investment in new inventory?

One way is to work with your Client and or Leasing Company (it could be a Dealer) and enable them to offer their Customers a Buyback Guarantee. When selecting a loan the size of the Customer's regular monthly repayments can be effected by the size of the balloon selected, which is the amount owing at the end of the loan.

The balloon payment is the lump sum owed to the lender at the end of a loan term after all regular monthly repayments have been made. Splitting the loan up this way allows the customer to repay only part of the principal of their loan over the term and reducing their monthly repayment in exchange for owing the lender a lump sum at the end of the loan term.

This approach increases affordability and maximum loan size and so assisting with cash flow management particularly when it may be most needed.

To further enhance the buying experience it can be possible to provide the customer with the option to either pay the balloon outright and take outright ownership of their equipment purchase or return their equipment.

Such programs need to be carefully drafted and clear appraisal of the historical residuals relating to the covered equipment to extrapolate future risk together with client appetite to share in risk.

Favorable accounting treatment depending on the region or territory can also make the program appealing.

For further information or an informal discussion please contact Mark Standen, Mocden Insurance Services mstanden@mocden.co.uk

Buy-Back Guarantee Programs

183:905206971 (Mark Standen) — Wed, 27 Apr 2022 01:41:40 GMT

Balloon Payments and Your Buy Back Program

Heavy Plant Equipment Inventory

So how can you create a better environment to induce investment in new inventory?

This approach increases affordability and maximum loan size and so assisting with cash flow management particularly when it may be most needed.

Such programs need to be carefully drafted and clear appraisal of the historical residuals relating to the covered equipment to extrapolate future risk together with client appetite to share in risk.

Favorable accounting treatment depending on the region or territory can also make the program appealing.

For further information or an informal discussion please contact Mark Standen, Mocden Insurance Services mstanden@mocden.co.uk