why do insurance company’s have to send a copy of car policy to the bank. Is it a law?

I work for a bank and we receive a large volume of these, they are just thrown out. I would like to cut down on all the paper we are receiving and the time it takes to sort threw this mail.

Asked on June 11, 2009 under Insurance Law, Massachusetts

Answers:

L.M., Member, California Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

When a bank finances a car, just like with a house, they want to know that the car is insured to protect their investment.  I believe it is the bank that requires the policy, although the declarations sheet should be sufficient,  The dec sheet shows all the coverages.  I don't see why it would be necessary to have the entire policy.


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