Insurance policies are contracts between the named insured and the insurance company. These are the only parties that can initiate cancellation.
Changing the named insured on an insurance policy assigns the rights of that policy to another party. Assignments can only be made with insurance company permission.
Our Privacy Policy allows certain customer information to be released to third Parties for policy servicing purposes. Information can be released to a mortgagee if they are shown on the policy to protect their financial interest. If the mortgagee is not listed on the policy, information should not be released until our policyholder has requested the lender be added to their policy.
However, if a mortgagee is able to properly identify themselves as a mortgagee pursuant to a typical mortgagee agreement, they have the agreement of the policyholder to receive coverage information from State Farm and be added as a mortgagee. If the Fire Associate or Agent receiving the call recognizes the caller to be a typical institutional mortgagee and the caller can provide the policyholder's name, address, and loan number, then that will meet the requirement.
The same information can be shared with mortgagees whether or not there is a do not share message based on their insurable interest.
The State Farm mortgage clause is a condition of the policy that protects the financial interest of the mortgage company as its interests may appear. This means that at time of a claim, all mortgage companies listed on the policy are informed of the claim and will have their financial interest covered appropriately.
State Farm's mortgage clause is a condition of each policy that defines a mortgage company's interests in the insured's property. The industry's coverage standard for the mortgage clause is referred to as ATIMA or "as their interests may appear.
State Farm supports the electronic exchange of information through a combination of EDI Formats. To initiate the testing process, please email home.sys-lenderedi.299h00@statefarm.com.
State Farm supports two forms of electronic billing for mortgage companies who escrow funds for their customer's hazard insurance payments:
- The Daily EDI Mortgage Notification, Billing and Payment method is recommended for most situations because your files of escrowed customer's insurance payments are sent electronically to one location, State Farm Corporate Headquarters. Most mortgage companies find this is much more efficient than the online list bill or paper documents.
- The Online Mortgage Billing and Payment application allows you to make payments in an online format. This method is recommended if a mortgage company cannot support the Daily EDI transmission defined above.