Most states have laws that a creditor may charge additional fees for certain insurances, as long as a clear and specific written statement is provided and agreed to by the borrower. Typically, the statement must list the cost of the insurance, a statement that the consumer may choose the person through whom the insurance is obtained, and, depending on the state, the term length and frequency of the premiums. Some of the insurances offered may include credit life, credit disability, property, accident, and unemployment insurances.
For those of our clients who wish to offer these types of credit insurance in connection with their loans, we will begin providing our multi-state Cost of Insurance Disclosure (Cx16488) in Initial Disclosures when the following insurance fields are populated with an amount greater than 0:
- Lender Property Insurance Premium (Field Index 15362)
- Lender Separate Liability Insurance Premium (Field Index 74060)
- Credit Insurances Total Premium (Field Index 67573)
These fields are mapped to trigger the document with field 74069 “Print Cost of Insurance Disclosure”.
At this point in time, the states included in Cx16488 are Colorado, the District of Columbia, Maine, Minnesota, New Jersey, Oklahoma, Pennsylvania, and Wyoming. We will be adding more states on a continual basis as time permits. If any clients desire to use our new Cost of Insurance Disclosure, the following fields (in addition to those above) must be set up in order to properly populate all existing versions of the document:
- Credit Life Premium (6633)
- Credit Disability Premium (6635)
- Lender Property Insurance Premium (15362)
- Credit Unemployment Premium (29907)
- Property Insurance – Frequency of Premium (74059)
- Separate Liability Insurance – Frequency of Premium (74061)
- Lender Separate Liability Insurance Term (74062)
- Credit Life Insurance – Frequency of Premium (74063)
- Credit Life Insurance Term (74064)
- Accident and Health Insurance – Frequency of Premium (74065)
- Accident and Health Insurance Term (74066)
- Credit Disability Insurance – Frequency of Premium (74067)
- Credit Disability Insurance Term (74068)
- Single Borrower Credit Life Premium (80335)
- Single Borrower Credit Disability Premium (80336)
- Single Borrower Involuntary Unemployment Premium (80337)
- Credit Insurances Total Single Borrower Premium (80338)
The new Cost of Insurance Disclosure will be available immediately. If you have any questions or concerns about this new document, please contact Client Support at 1.800.497.3584.
September 28, 2016