CH11 Flashcards

1
Q

What is PPI/MPPI?

A

General insurance policy written on annual, reviewable basis that will pay a monthly benefit equal to 100/125% of mortgage costs paid if insured is unable to work due to sickness, accident or disability or involuntary redundancy

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2
Q

What is ASU?

A

Virtually identical to PPI except not designed exclusively for mortgage costs, may inc lump sum payments

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3
Q

When must buildings insurance be included in APRC?

A

If purchase through lender’s agency is compulsory, must be included in premiums and in ESIS

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4
Q

What is higher lending charge?

A

In order to reduce risk, lenders make HLC where high LTV. Buys insurance cover of forced sale.

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5
Q

What excess should apply to higher lending policies set by ABI?

A

20%

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