Should both gross indebtedness (principal plus finance charges) coverage and net payoff indebtedness (principal only) coverage be allowed?
Both gross indebtedness (principal plus finance charges) coverage and net payoff indebtedness (principal only) coverage should be allowed. There should be flexibility in the coverages offered. C. Should commissions earned by the lender on credit insurance products be restricted? YES. The ability of the lender to earn premiums on the sale of credit insurance gives the lender the incentive to “push” insurance products. D. When included in a consumer credit transaction, should credit life insurance coverage (for which premiums are calculated on the basis of the number of years of the loan) be required to be in effect for the entire duration of the loan? YES. It is unconscionable that a person would be sold coverage that expires before the obligation to repay the loans expires. The borrower receives an insubstantial benefit from this transaction. E. Should continuing education requirements be established for persons selling credit life insurance? NO. The tremendous turnover in employment w
