Limited Power Of Attorney
This form 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. Individual concerns 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, Assignor will be able to rum this information over to a repossession firm on the Assignee just for his protection. If the Assignee does not make payment, Assignor will be able to turn this information over to a repossession firm to retrieve the vehicle.
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 that of the assignor or assignee.
Insurance can remain on the existing owner s policy by just adding the assignee as an additional insured. The owner may prefer to set up a new policy so that the assignee s driving record will not affect the rates that they pay for their other vehicles.
Recommended liability limits of 100,000/300,000/50,000
(100,00 maximum limit of liability per persons, 300,000
Maximum limit liability for all persons per accident, 50,000 maximum limit of liability per accident for property damage). 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, you do have some options. Some insurance companies will allow you list the Assignee as Primary Insured and the Assignor as Non-Driving 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 Payee 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.
REGISTRATION PROCESS
Each state has different systems. We have found that the most common is as follows:
Register Vehicle in Assignor s name in care of Assignee s name and address. Keep Limited Power of Attorney with registration. In most states, LIMITED POWER OF ATTORNEY along with the ASSIGNMENT CONTRACT is sufficient to register a vehicle. REGISTRATION AND LICENSE PLATE are to remain in Assignor s name, (normally leave the same license plate on the vehicle.
TAXES
Assignor will receive all property taxes on vehicle and then forward to the assignee.
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