What it does
CA 26 05 is the deductible endorsement for ISO's Single Interest Automobile Physical Damage Insurance Policies (CA 26 01 individual policy form and CA 26 02 finance master policy form). As its title indicates, it sets the deductibles that apply to losses paid to the lender under those policies. The 04 80 edition is still the current edition in most jurisdictions.
Who needs it
Lenders that want premium savings by retaining small losses on their single interest coverage.
Selling notes
- Match deductibles to the lender's average loan size; a high deductible on low-balance loans can eliminate most recoveries.
- Review the deductible choice at renewal as the mix of loans in the portfolio changes, and confirm the deductible schedule matches the policy form used (individual or finance master).
