Ebook Sample Content Preview:
LIMITED POWER OF ATTORNEY This fonn needs to be signed by Assignor and notarized by a Notary Public. It gives the Assignee the authorization to sign on behalf of Assignor in matters concerning the vehicle. (To be attached to registration)
SUGGESTED ASSIGNMENT AGREEMENT The provisions recommended in this agreement are meant to protect both parties. If indiv idual concerns are not covered, they can be added while others can be deleted. This agreement is only meant to be a guideline for constructing your own finalized contract.
CREDIT INFORMATION SHEET The Assignor will need some information on the Assignee just for his protection. If the Assignee does not make payments, the Assignor will be able to give this infonnation over to a repossession firm on die Assignee just for his protection.
INSURANCE Insurance regulations differ widely from state to state. The simplest and most widely accepted structure for this arrangement is as follows:
List the owner as primary insured and assignee as additional insured. The loss payee will always be the lien holder. The policy address can be diat of the assignor or assignee.
Insurance can remain on the existing owners policy by just adding the assignee as an additional insured. The owner may prefer to set up a new policy so that die assignees driving record will not affect die rates that he pays for his other vehicles.
Recommended liability limits of 100.000/300.000/50,000: 100.00 maximum limit of liability per person, per accident; 300.000 maximum limit of liability for all persons per accident; 50.000 maximum liability limit for property damage, per accident. These higher liability limits normally will account for a minor increase in rates.
If the assignor has a poor driving record, that would make your insurance premiums prohibitive; however, you do have some options. Some insurance companies will allow you to list the Assignee as Primary Insured and the Assignor as NonDriving additional insured. They will treat the policy just like a normal lease. In the place of the leasing company, they will insert the name of the Assignor. The Loss Pay ee remains the bank or lien holder. Let the insurance company know that you have the Power of Attorney for this vehicle.
If this is the direction that is most economical for you. then you may want to find a creative, knowledgeable agent (this is not always easy). Many agents may reject your policy without fully understanding the relationship or legality of it. We recommend talking directly to the underwriters if the agent does not seem knowledgeable. If you do set up your policy in this manner, then you may want to contact the Department of Motor Vehicles in order to see if a lease tag can be issued in your name without changing the title.