Tag Archives: Auto Dealers Coverage

Why do Auto Dealers Purchase Limited Truth in Lending Coverage?


By Greg Johnson. Why do dealerships keep purchasing statutory errors and omissions coverage that is not likely to protect the dealership if it is sued by a customer for truth in lending violations? I’ve been handling dealership insurance coverage disputes … Continue reading

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Protecting the Dealership’s “Front-End” and “Back-End”: What Does that Mean?


By Greg Johnson. Everyone in the retail automobile industry is familiar with the terms “front-end” and “back-end.” They represent two sources of potential revenue (and, hopefully, profit) for auto dealerships: The “front-end” refers to revenue realized on the sale of … Continue reading

Posted in ADCF Policy, Auto Dealer, Coverage, Duty to Defend, Duty to Indemnify, Truth in Lending Coverage | Tagged , , , , , , , | Leave a comment

Auto Dealer Risk Management: Negotiating Dealer-Lender Agreement Terms


By Greg Johnson. Car sales are booming and lenders are clamoring for indirect financing business.  Now is a great time for dealers to dust off and review their Dealer Agreement (a/k/a lender master financing agreements) with lenders, particularly the warranty, … Continue reading

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Hey Dealer, Can I Get a Loaner?


By Greg Johnson. I recently wrote an article for the Minnesota Automobile Dealer Association’s MN Dealer Outlook Magazine (Winter 2015).  If your Minnesota dealership provides dealer-owned loaner vehicles to customers while the customer’s vehicle is being repaired, you’ll want to … Continue reading

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Speaking at Automotive Dealer Subprime Sales Success Workshop on April 7-8th in Atlanta, Georgia.


I will be a speaker at the Automotive Dealer Subprime Sales Success workshop on April 7-8th in Atlanta, Georgia. I will be speaking on two related topics.  First, about F&I compliance and class action litigation issues (spot delivery, acquisition fees, … Continue reading

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The Auto Dealer’s Coverage Form (ADCF) Policy: No Coverage for Violations of Prior Damage Disclosure Statutes.


In 2013, Insurance Services Office (ISO) rolled out its new Auto Dealers Coverage Form (ADCF) Policy. The ADCF Policy replaces the Garage Liability (GL) Policy which had been available for decades. One of the most major differences between the GL … Continue reading

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Sonic Dealerships Lose Class Action Insurance Coverage Dispute with Chrysler Insurance: Statutory Errors or Omissions Coverage did not apply to Dealers’ Failure to Disclose Price of Etch in Retail Installment Sales Contracts.


By Greg Johnson. I recently posted an article providing a general overview of the insuring clause to the “Acts, Errors or Omissions” of the new Auto Dealers Coverage Form (“ADCF”) Policy.  (See the article here).  This optional coverage is primarily … Continue reading

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