13.2c Flashcards
A group must have been established for at least ______ before attaining group insurance.
2 years
Two or more credit unions can group together and form a trust for the purpose of providing insurance for members of each participating credit union. Similar in structure to other group trusts, credit union trusts are managed by trustees who serve as the ______ of the group plan, issuing certificates of insurance to credit union members.
master policyowner
All members of participating credit unions, or all of any class of members, are eligible for group coverage under the trust, which serves the purpose of ______, not the trust’s organizers. Policy premiums are paid by the trust, which is funded by premiums paid by each member covered under the group plan.
benefiting members of the credit union
Blanket insurance is non-specific group insurance provided when a group is constantly changing. Specific members are not listed under the policy and proof of coverage is recognized by proof of membership to the group. An example of a college covering all full-time students shows that due to the continual changing of the population of the group, membership to the college equates to ______. Similar examples are players on a sports team, executives flying in a corporate jet, or passengers on a cruise ship. Groups can be either contributory or noncontributory regarding premium payment.
membership under the group insurance
Credit life insurance covers an insured’s debt to a creditor upon death. A credit life policy is a decreasing term life policy that is issued by an insurer associated with a bank or similar lending institution and covers the amount of debt owed by a debtor over the period of time in which he or she is paying off the debt. In the event of death, the policy ______. Coverage diminishes over time as the amount of debt decreases, eventually ending when the debt has been completely repaid.
pays the remaining difference of what is still owed by the debtor in order to pay off the debt
A credit policy’s face amount is regulated to ensure that such policy ______, and serves to fulfill the debtor’s contractual obligations in the event of death. Simply put, the face amount of credit insurance cannot exceed the amount of debt incurred by the debtor.
covers only the amount of debt owed by the debtor
