Credit Insurance

The credit insurance license is a:

limited lines license

What is the lender of money or vendor of goods, services, property, rights or privileges, for which payment is arranged through a credit transaction or any successor to the right, title or interest of any such lender, vendor or lessor?

creditor

_____________ is a borrower of money or a purchaser or lessee of goods, services, property, rights or privileges for which payment is arranged through a credit transaction.

debtor

Which of the following is NOT considered a credit transaction

cash purchase of an I-pod

Credit Life Insurance generally uses which type of term insurance?

decreasing term

In accordance with the credit insurance Act, an automobile dealership which leases vehicles to customers is a(n):

creditor

What is NOT true regarding credit insurance exceptions

a certificate of group credit insurance must be delivered with 60 days of incurring the debt

What is NOT required to be included on certificate of insurance

the name an address of the insurance producer

upon an insured's death, the indebtedness is paid off, but there is $500 of excess credit life insurance. This excess will:

be paid to the debtor's beneficiary

If an indebtedness matures early, existing credit insurance premiums:

may be refunded or credited to the debtor

A debtor's indebtedness matures on Jund 1. the term of the debtor's credit life insurance:

may extended until June 15

All credit insurance sold shall be evidenced by a (an):

either an insurance policy or a certificate of insurance

What is correct regarding approved credit policy forms which are disqualified by the commissioner

with 20 days prior notice and a hearing, the commissioner may withdraw approval of policy forms

The total amount payable by a debtor to a creditor as part of a credit transaction is:

an indebtedness

open end credit insurance refers to?

credit card transaction

In accordance with the Credit insurance Act, what authority does the commissioner NOT have?

the issuance of a licensed insurance counselor's license for the purpose of transacting credit insurance business

Any producer or insurer that is in violation of the credit insurance act is subject to a minimum penalty of:

a fine of $250

A consumer:

may purchase credit insurance as part of a credit transaction

Credit A&H insurance is designed to:

pay monthly credit installments when the debtor is totally disabled

An individual who refers large numbers of consumers to lender for credit insurance is a (an):

affiliate

"The inability to perform the duties of your occupation", best defines:

total disability

A one time period of time that begins with the effective date of the policy and does not pay for sickness claims for the first 30, 60 or 90 days of the policy. Best describes.

probationary period

Coverage offered for the full term of the loan, but with the benefit limited to a specific number of monthly payments, or remaining payments if less, best defines:

critical period disability coverage

Coverage offered during a portion of the term of the loan. Benefits are paid only if the disability occurs during the term of coverage. Monthly benefit payments continue only until the end of the term of the insurance. This best defines:

truncated coverage

Per the insurance rules in the state of Michigan, as it pertains to credit life insurance, insurers shall not refuse to continue to insure, or limit the amount of insurance available to an individual because the person is age:

70

The term coverage, for a credit life or credit health policy, may not exceed more than _____ days beyond scheduled maturity date of the debt, except when extended without additional cost pursuant to a written agreement.

15

With regards to credit unemployment insurance, what is not considered involuntary termination?

Disability

The type of payment is simple an installment loan with a single, usually large payment due as the loan matures best describes:

Balloon payment

Proof of insurance (a certificate of insurance) must be delivered to the insured debtor within ____ days of incurring the debt

30

The commissioner has _______ days after receipt to approve or disapprove policies, forms, premiums, etc.

30