The appellant, Karen Campbell, appeals the final summary judgment rendered in favor of the appellee, Household Life Insurance Company ("HLIC"), determining that an application for credit life insurance completed by Mrs. Campbell and her now deceased husband, Danny R. Campbell, was not ambiguous and had never been accepted by HLIC. Because we agree with the trial court that the insurance documentation was not ambiguous and that no insurance contract was created prior to Mr. Campbell's death, we affirm.
The facts are not in dispute. Mr. and Mrs. Campbell refinanced the mortgage on their home through Beneficial Florida, Inc. Simultaneously, the couple applied for optional credit life insurance through HLIC as offered to them by the lender. In order to do so Mr. and Mrs. Campbell executed and submitted an application for credit life insurance and a disclosure form.
The Credit Insurance Disclosure provided to the Campbells for execution contained disclosures required by Florida law, and stated that "you understand that credit insurance coverage may be deferred if, at the time of application you are unable to perform normal activities of a person(s) of like age or sex, if the proposed credit insurance policy contains this restriction." It further provided that "[a]ny credit insurance you buy will be effective on your Loan Date shown above, unless coverage is added after the date of your Loan." The couple also executed an authorization to debit account which allowed Fort Knox National Bank to deduct premium payments directly from the Campbells' checking account. The fixed monthly insurance premium payment was not financed, but was to be included in the Campbells' monthly loan payments.
The Credit Insurance Disclosure also contained the following language on the signature page:
You acknowledge that: (1) your purchase of credit insurance is completely voluntary, (2) there will be no insurance until the insurer has approved your application (if one is required), (3) if the amount of your regular monthly loan payment changes and is less than the amount of your disability benefit, you direct the excess of the disability benefit to be paid to us to reduce your indebtedness, (4) you have reviewed and met the above eligibility requirements for the coverage(s) elected, and (5) you have read and received a copy of this Optional Credit Insurance Disclosure.
(Emphasis added).
Monday, December 19, 2011
Wednesday, November 30, 2011
Understanding the Credit Insurance Policy
If you possess a credit card more than likely you have been asked if you would like to include credit insurance. Credit insurance is a type of insurance wherein you are the purchaser and the lender is the recipient. Any expenditure will be made straight to the lender. This type of insurance may be favorable for some but an unnecessary cost for others depending on your circumstances. Knowing what this kind of insurance is and the different categories will assist you in making a knowledgeable decision. There are four key types of credit insurance: disability, property, unemployment and life.
-Credit Life Insurance pays off the debt you owe when you are deceased. The company that the debt is owed to would be the beneficiary of the policy.
-Credit Disability Insurance pays your monthly minimum if you become medically immobilized.
-Involuntary Unemployment Credit Insurance will pay your minimum monthly payment if you are laid-off your job. The insurance doesn't cover payments if you purchase it after you are unemployed.
-Credit Property Insurance normally completely cancels debt on merchandise purchased with the credit if the items are ruined by particular events listed in the policy, a deductible would not have to be paid.
Normally when credit insurance is purchased the offer is free at first. Companies will entice you with a check that you can deposit. Accepting the check is also agreeing to register for the program. Be aware that unlike many insurance plans, you can be obligated to a credit insurance contract by a verbal yes. A signature is not always required.
If you already possess considerable life and disability insurance policies, you may already have enough coverage to cover your credit debts incase of your death or disability. These types of insurances are more flexible than credit insurance and more cost effective. Find out about insurance from Macquarie Life. Also make sure to visit OnePath Life Cover.
If you decide to agree to credit insurance, you should ask about what is "excluded" in the policy. Accepting an insurance policy that consist of all four types (disability, property, unemployment, life) may be more than you need, be sure to check that you are not over-your-head with excessive insurance.
Keep in mind that most credit insurance starts on a free trial footing. When the free trial is over you must decide if you would like to keep the policy. A big drawback is that after the free trial has finished it could be cumbersome to cancel your policy. Sometimes credit insurance seems more like a scam than something beneficial for you. Often times it can be problematic to find the correct phone number or to cancel your policy. Communication with the credit card company may not be of much help since they may be confused about which insurance company that offered you the insurance in the first place. The best piece of advice for dealing with credit card insurance is to make sure you are well informed with all the information you need if you decide to cancel. Write it down; keep it in a secure place with all of your credit card information.
-Credit Life Insurance pays off the debt you owe when you are deceased. The company that the debt is owed to would be the beneficiary of the policy.
-Credit Disability Insurance pays your monthly minimum if you become medically immobilized.
-Involuntary Unemployment Credit Insurance will pay your minimum monthly payment if you are laid-off your job. The insurance doesn't cover payments if you purchase it after you are unemployed.
-Credit Property Insurance normally completely cancels debt on merchandise purchased with the credit if the items are ruined by particular events listed in the policy, a deductible would not have to be paid.
Normally when credit insurance is purchased the offer is free at first. Companies will entice you with a check that you can deposit. Accepting the check is also agreeing to register for the program. Be aware that unlike many insurance plans, you can be obligated to a credit insurance contract by a verbal yes. A signature is not always required.
If you already possess considerable life and disability insurance policies, you may already have enough coverage to cover your credit debts incase of your death or disability. These types of insurances are more flexible than credit insurance and more cost effective. Find out about insurance from Macquarie Life. Also make sure to visit OnePath Life Cover.
If you decide to agree to credit insurance, you should ask about what is "excluded" in the policy. Accepting an insurance policy that consist of all four types (disability, property, unemployment, life) may be more than you need, be sure to check that you are not over-your-head with excessive insurance.
Keep in mind that most credit insurance starts on a free trial footing. When the free trial is over you must decide if you would like to keep the policy. A big drawback is that after the free trial has finished it could be cumbersome to cancel your policy. Sometimes credit insurance seems more like a scam than something beneficial for you. Often times it can be problematic to find the correct phone number or to cancel your policy. Communication with the credit card company may not be of much help since they may be confused about which insurance company that offered you the insurance in the first place. The best piece of advice for dealing with credit card insurance is to make sure you are well informed with all the information you need if you decide to cancel. Write it down; keep it in a secure place with all of your credit card information.
Monday, September 12, 2011
Scam Alert: Do you need to buy credit insurance?
In tough times we all worry about paying our bills. But should you take out insurance when you’re buying something big just in case?
The Maryland attorney general’s office wants to make sure you understand what’s happening if you do, because they’re getting complaints.
Pros and Cons
Whether you’re buying a car or home it can be nerve racking, so you might be looking for a safety net with something called credit insurance.
It’ll cover your bills if you die, get hurt or lose your job. But Assistant Attorney General Karen Straughn warns it’s notoriously overpriced and not everybody needs it.
She says some people are getting this kind of insurance and paying for it month after month without even realizing it.
It’s being thrown away by people who may have inadvertently signed on for credit insurance when they signed up for a big loan. It might be sold to you with claims it’s mandatory, but in Maryland that’s often not the case.
Instead Straughn warns this kind of insurance is often buried in the fine print of contracts, especially when you’re buying a car.
Dealerships may not explain it to you and it may add it into your finance agreement.
That’s why you’ve got to make sure you understand the terms before you sign on.
Anyone offering credit insurance should disclose it before you commit, so make sure you find out how long you’ll be paying, how much, and exactly what it covers.
The Maryland attorney general’s office wants to make sure you understand what’s happening if you do, because they’re getting complaints.
Pros and Cons
Whether you’re buying a car or home it can be nerve racking, so you might be looking for a safety net with something called credit insurance.
It’ll cover your bills if you die, get hurt or lose your job. But Assistant Attorney General Karen Straughn warns it’s notoriously overpriced and not everybody needs it.
She says some people are getting this kind of insurance and paying for it month after month without even realizing it.
It’s being thrown away by people who may have inadvertently signed on for credit insurance when they signed up for a big loan. It might be sold to you with claims it’s mandatory, but in Maryland that’s often not the case.
Instead Straughn warns this kind of insurance is often buried in the fine print of contracts, especially when you’re buying a car.
Dealerships may not explain it to you and it may add it into your finance agreement.
That’s why you’ve got to make sure you understand the terms before you sign on.
Anyone offering credit insurance should disclose it before you commit, so make sure you find out how long you’ll be paying, how much, and exactly what it covers.
Credit Insurance: Is It for You?
The next time you apply for a mortgage or personal loan, you may be asked if you want to buy credit insurance, or it might already be included in your loan proposal. Credit insurance protects the loan on the chance that you can't make your payments. Credit insurance usually is optional, which means you don't have to purchase it from the lender. In fact, the Federal Trade Commission (FTC), the nation's consumer protection agency, says it's against the law for a lender to deceptively include credit insurance (or other optional products) in your loan without your knowledge or permission.
There are four main varieties of credit insurance: Credit life insurance pays off all or some of your loan if you die.Credit disability insurance, also known as accident and health insurance, makes payments on the loan if you become ill or injured and can't work. Involuntary unemployment insurance, also known as involuntary loss of income, makes your loan payments if you lose your job due to no fault of your own, such as a layoff.Credit property insurance protects personal property used to secure the loan if destroyed by events like theft, accident or natural disasters.
Shopping Tips
Before deciding to buy credit insurance from a lender, think about your needs, your options, and the rates you're going to pay. You may decide you don't need credit insurance. If you do, credit insurance can be an expensive form of insurance. For example, it may be less expensive and more practical for you to get life insurance than credit insurance. Before deciding to buy credit insurance, you should ask:
How much is the premium?
Will the premium be financed as part of the loan? If so, it will increase your loan amount and you'll pay additional interest, and more for points (if points are on your loan).
Can you pay monthly instead of financing the entire premium as part of your loan?
How much lower would your monthly loan payment be without the credit insurance?
Will the insurance cover the full length of your loan and the full loan amount?
What are the limits and exclusions on payment of benefits - that is, spell out exactly what's covered and what's not.
Is there a waiting period before the coverage becomes effective?
If you have a co-borrower, what coverage does he or she have and at what cost?
Can you cancel the insurance? If so, what kind of refund is available?
Before you sign any loan papers, ask the lender whether the loan includes any charges for voluntary credit insurance. If you don't want credit insurance, tell the lender. If the lender still pressures you to buy insurance, find another lender. And review your loan papers carefully to be sure they have been drawn up correctly.
Lenders can't deny you credit if you don't buy optional credit insurance - and if you don't buy it directly from them. If a lender tells you that you'll only get the loan if you buy the optional credit insurance, report the lender to your state attorney general, your state insurance commissioner or the FTC. Consumers should ask these same questions about other extra products offered with their loan, such as auto or shopping clubs, home or auto security plans, and debt cancellation products.
There are four main varieties of credit insurance: Credit life insurance pays off all or some of your loan if you die.Credit disability insurance, also known as accident and health insurance, makes payments on the loan if you become ill or injured and can't work. Involuntary unemployment insurance, also known as involuntary loss of income, makes your loan payments if you lose your job due to no fault of your own, such as a layoff.Credit property insurance protects personal property used to secure the loan if destroyed by events like theft, accident or natural disasters.
Shopping Tips
Before deciding to buy credit insurance from a lender, think about your needs, your options, and the rates you're going to pay. You may decide you don't need credit insurance. If you do, credit insurance can be an expensive form of insurance. For example, it may be less expensive and more practical for you to get life insurance than credit insurance. Before deciding to buy credit insurance, you should ask:
How much is the premium?
Will the premium be financed as part of the loan? If so, it will increase your loan amount and you'll pay additional interest, and more for points (if points are on your loan).
Can you pay monthly instead of financing the entire premium as part of your loan?
How much lower would your monthly loan payment be without the credit insurance?
Will the insurance cover the full length of your loan and the full loan amount?
What are the limits and exclusions on payment of benefits - that is, spell out exactly what's covered and what's not.
Is there a waiting period before the coverage becomes effective?
If you have a co-borrower, what coverage does he or she have and at what cost?
Can you cancel the insurance? If so, what kind of refund is available?
Before you sign any loan papers, ask the lender whether the loan includes any charges for voluntary credit insurance. If you don't want credit insurance, tell the lender. If the lender still pressures you to buy insurance, find another lender. And review your loan papers carefully to be sure they have been drawn up correctly.
Lenders can't deny you credit if you don't buy optional credit insurance - and if you don't buy it directly from them. If a lender tells you that you'll only get the loan if you buy the optional credit insurance, report the lender to your state attorney general, your state insurance commissioner or the FTC. Consumers should ask these same questions about other extra products offered with their loan, such as auto or shopping clubs, home or auto security plans, and debt cancellation products.
Wednesday, March 9, 2011
European credit insurance has to adapt to a new era
Moody’s ratings for European credit insurers is a continuously challenging economic environment as well as common trends in the sector of progressive relaxing in underwriting discipline.
It said that it believes that profitability patterns may differentiate industry players in 2011. In particular, reserves development and costs management will be important drivers of future profitability.
In 2011, some credit insurers may also initiate strategic moves, as a result of the crisis, or in anticipation of Solvency II, which may have various ratings impacts.
Moody’s added that results disclosed by credit insurers in 2010 saw a recovery in loss ratios to levels reported before the credit crisis. This reflected improvements in the global economy, as well as strong measures taken by all industry players to adapt their pricing and risks selection to a challenging claims environment.
It said it expects continuity to prevail in the macroeconomic environment over the next two years, with a high level of business insolvencies and a sluggish economic growth; therefore, spikes in loss ratios are also less likely, marking the entry of the industry into a new cycle.
It said that both sluggish economic growth and the potential for increased levels of self-insurance in reaction to the tightening of underwriting implemented during the crisis will serve to constrain credit insurers’ revenue going forward.
In addition, it believes loss ratios reported in 2010 are unsustainable, as insurers have started to relax their underwriting discipline in order to stimulate demand and mitigate pressures on revenue.
The fragile and uneven economic outlook also exposes credit insurers to large claims and local crises. Finally, in the short term, low financial and reinsurance results will also constrain credit insurers’ profitability.Reserves development and costs management will also be important drivers of future profitability, and these factors may vary by players.
It added that the industry’s new cycle will also be influenced by the preparation for Solvency II. It said that although this legislation is not yet finalised, QIS 5 specifications suggest that regulatory capital requirements for credit insurers are likely to rise. This is a challenge for the industry, which itself has just recovered from the crisis, and is expected to drive an increased focus on capital management in the coming years. In particular, the industry may choose to increasingly rely on reinsurance.
Although reinsurers are currently able to offer ample capacity, from which credit insurers can benefit in the short term, it said it believes this capacity may be volatile or costly in the long term, such that too high a dependence on reinsurers would be a credit negative for the industry.
It said that it believes that profitability patterns may differentiate industry players in 2011. In particular, reserves development and costs management will be important drivers of future profitability.
In 2011, some credit insurers may also initiate strategic moves, as a result of the crisis, or in anticipation of Solvency II, which may have various ratings impacts.
Moody’s added that results disclosed by credit insurers in 2010 saw a recovery in loss ratios to levels reported before the credit crisis. This reflected improvements in the global economy, as well as strong measures taken by all industry players to adapt their pricing and risks selection to a challenging claims environment.
It said it expects continuity to prevail in the macroeconomic environment over the next two years, with a high level of business insolvencies and a sluggish economic growth; therefore, spikes in loss ratios are also less likely, marking the entry of the industry into a new cycle.
It said that both sluggish economic growth and the potential for increased levels of self-insurance in reaction to the tightening of underwriting implemented during the crisis will serve to constrain credit insurers’ revenue going forward.
In addition, it believes loss ratios reported in 2010 are unsustainable, as insurers have started to relax their underwriting discipline in order to stimulate demand and mitigate pressures on revenue.
The fragile and uneven economic outlook also exposes credit insurers to large claims and local crises. Finally, in the short term, low financial and reinsurance results will also constrain credit insurers’ profitability.Reserves development and costs management will also be important drivers of future profitability, and these factors may vary by players.
It added that the industry’s new cycle will also be influenced by the preparation for Solvency II. It said that although this legislation is not yet finalised, QIS 5 specifications suggest that regulatory capital requirements for credit insurers are likely to rise. This is a challenge for the industry, which itself has just recovered from the crisis, and is expected to drive an increased focus on capital management in the coming years. In particular, the industry may choose to increasingly rely on reinsurance.
Although reinsurers are currently able to offer ample capacity, from which credit insurers can benefit in the short term, it said it believes this capacity may be volatile or costly in the long term, such that too high a dependence on reinsurers would be a credit negative for the industry.
How to Get Mortgages For Bad Credit
For people who want to pay off their debts and increase their credit score, they can always look for mortgages for bad credit. It is a loan which is derived from the home equity accumulated over the years in your home. This kind of loan can be quite beneficial for you since it can lower interest costs and monthly payments. It also consolidates your debts so that you can only pay once a month.
The two most accepted choices for bad credit mortgage loans are cash in mortgage finance and a home equity mortgage. These mortgages count on your equity, which will then be used to manage your debts. When you consolidate your debts, it can be arranged to combine all of your credit card payments, auto loans and other related debts into one easy monthly, lowered interest payment. In due time, you will notice that your credit score is improving.
When you apply for a bad credit mortgage loan, you need to increase your down payment as well as your cash reserves. A lower credit score means more money to pay for down payment. Credit scores below 600 require around 5% down payment. Lenders need to have confidence that you can still pay your loans even if you’re going through a financial situation.
You can always have the option to do your own research on this type of loan.
The two most accepted choices for bad credit mortgage loans are cash in mortgage finance and a home equity mortgage. These mortgages count on your equity, which will then be used to manage your debts. When you consolidate your debts, it can be arranged to combine all of your credit card payments, auto loans and other related debts into one easy monthly, lowered interest payment. In due time, you will notice that your credit score is improving.
When you apply for a bad credit mortgage loan, you need to increase your down payment as well as your cash reserves. A lower credit score means more money to pay for down payment. Credit scores below 600 require around 5% down payment. Lenders need to have confidence that you can still pay your loans even if you’re going through a financial situation.
You can always have the option to do your own research on this type of loan.
Can you reduce your credit card debts?
Millions of us are now struggling to pay off our credit cards. The good news is that as the numbers rise, banks are increasingly agreeing to reduce or even remove your debts. We highlight where you can go to get help.
BANKS wrote off an enormous £1.18 billion of card debt in only three months at the end of last year.
That’s up from £740 million in the previous quarter, and up from £894 million during the same period in 2009. The latest figures from the Bank of England show how UK banks are more willing to help those struggling with huge credit card bills.
But this certainly doesn’t guarantee that your debts will be written off. Banks will look closely at whether you can’t pay rather than won’t pay. If you’re squandering your spare cash, you’ll still be expected to meet your payments. Also, having your debts written-off will still damage your credit record.
As millions of borrowers struggle to bring down their card and loan debts, debt helplines and management agencies have seen a huge rise in the number of enquiries.
Steve Rees, managing director of private debt management agency Vincent Bond & Co, comments: “These statistics echo the trends we are seeing at Vincent Bond as the banks, and the collection agencies who represent them, are becoming more prepared to accept settlement offers, with larger amounts of the debts written off.”
As with most other private debt agencies, Vincent Bond charges every customer a fee.
However, there are several charities and government bodies who provide debt advice and management services for nothing. For example, the Consumer Credit Counselling Service and National Debtline are registered charities that provides free, impartial advice to people struggling to repay debts.
Citizens Advice, which also provides free independent advice, has raised concerns with the Office of Fair Trading (OFT) about a number of bad practices used by some commercial debt management firms. These include persistent cold-calling of consumers and taking unauthorised upfront fees.
A CCCS spokesman explained that if people have the ability to repay their debts, instant write-offs are not something they would advise.
Debt advisers put those who can pay their bills onto a debt management plan. They will negotiate with your creditors to make repayments more manageable - interest and other charges are often frozen while you get on a better financial footing. Then you make one monthly payment to the organisation which distributes it among your creditors.
The important thing is that you don’t stick your head in the sand: If you’re in financial trouble, it’s crucial to get professional, impartial help as quickly as possible.
BANKS wrote off an enormous £1.18 billion of card debt in only three months at the end of last year.That’s up from £740 million in the previous quarter, and up from £894 million during the same period in 2009. The latest figures from the Bank of England show how UK banks are more willing to help those struggling with huge credit card bills.
But this certainly doesn’t guarantee that your debts will be written off. Banks will look closely at whether you can’t pay rather than won’t pay. If you’re squandering your spare cash, you’ll still be expected to meet your payments. Also, having your debts written-off will still damage your credit record.
As millions of borrowers struggle to bring down their card and loan debts, debt helplines and management agencies have seen a huge rise in the number of enquiries.
Steve Rees, managing director of private debt management agency Vincent Bond & Co, comments: “These statistics echo the trends we are seeing at Vincent Bond as the banks, and the collection agencies who represent them, are becoming more prepared to accept settlement offers, with larger amounts of the debts written off.”
As with most other private debt agencies, Vincent Bond charges every customer a fee.
However, there are several charities and government bodies who provide debt advice and management services for nothing. For example, the Consumer Credit Counselling Service and National Debtline are registered charities that provides free, impartial advice to people struggling to repay debts.
Citizens Advice, which also provides free independent advice, has raised concerns with the Office of Fair Trading (OFT) about a number of bad practices used by some commercial debt management firms. These include persistent cold-calling of consumers and taking unauthorised upfront fees.
A CCCS spokesman explained that if people have the ability to repay their debts, instant write-offs are not something they would advise.
Debt advisers put those who can pay their bills onto a debt management plan. They will negotiate with your creditors to make repayments more manageable - interest and other charges are often frozen while you get on a better financial footing. Then you make one monthly payment to the organisation which distributes it among your creditors.
The important thing is that you don’t stick your head in the sand: If you’re in financial trouble, it’s crucial to get professional, impartial help as quickly as possible.
Credit Card Debt Management: How to Avoid Damaging your Credit
Once you have that thin rectangular piece of plastic, you already feel that you have the license to shop till you drop. While this experience may be fun in some instances, people tend to forget that they have to pay for it. One great shopping trip can then turn into a horrible regrettable event. Not only will this lead you to a great amount of debt, it also wreaks havoc on your credit score.
If you want to maintain a good credit score, it’s advisable to avoid late payments as much as possible. If late payment is your form of habit, get ready to kiss your 3 digit credit score goodbye? How can one pay on time then? Monitor your purchases.
What’s worse than late payments? Missed payments, of course! Forgetting to pay their credit card dues will lead to late payment fees. Some companies even issue high interest rates for missed payments. And so, the solution for this problem is the same as the one listed above: monitor your purchases. Exercise self-control as well. If you need to prioritize on gas and other necessities, then don’t think about buying Chanel. Wait for the time when you’ve organized your budget and expenses. Once you have paid your debts, you can then allow yourself a much deserved treat (in moderation, of course).
If you want to maintain a good credit score, it’s advisable to avoid late payments as much as possible. If late payment is your form of habit, get ready to kiss your 3 digit credit score goodbye? How can one pay on time then? Monitor your purchases.
What’s worse than late payments? Missed payments, of course! Forgetting to pay their credit card dues will lead to late payment fees. Some companies even issue high interest rates for missed payments. And so, the solution for this problem is the same as the one listed above: monitor your purchases. Exercise self-control as well. If you need to prioritize on gas and other necessities, then don’t think about buying Chanel. Wait for the time when you’ve organized your budget and expenses. Once you have paid your debts, you can then allow yourself a much deserved treat (in moderation, of course).
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