- This topic has 1 reply, 2 voices, and was last updated 4 months ago by
.
-
Posts
-
The Final Rule requires non-deposit signs if both insured deposits and non-deposit products are offered within the IDI’s premises. Are the following considered non deposit products – credit life insurance sold by loan officers and AD&D Insurance (added feature of a checking account) – that would require the non-deposit sign to be posted in loan officer offices and CSR desks? Note: Our associated paper disclosures have the disclosures.
Per the FDIC website: https://www.fdic.gov/resources/deposit-insurance/financial-products-not-insured. It speaks to life insurance. However; Credit life insurance is not life insurance.
Their names are nearly identical, and both kinds of insurance policies make payouts in the event of a death. But that’s essentially where the similarities end.Life insurance covers the policyholder and makes payouts to their survivors upon their death. They make monthly premiums that create a cash value.
Credit life insurance covers a loan and benefits its lender by paying off the remainder of the loan if the borrower dies or is permanently disabled before the loan is paid in full.Neither Credit Life nor AD&D are considered deposits in the definitions. Life Insurance is considered a deposit and would require the non-deposit sign.
NOTICE: This email message, including any attachments, is intended only for the addressee, and may contain confidential and privileged information either as protected work product or confidential client information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, do not read, copy, retain, or disseminate this message or any attachment, and please contact the sender by reply e-mail or at 888.760.5646 and destroy all copies of the original message and attachments. Neither the transmission of this message or any attachment, nor any error in transmission or misdelivery shall constitute waiver of any applicable legal privilege.
THIS EMAIL AND ITS ATTACHMENTS DO NOT CONSTITUTE LEGAL ADVICE
- You must be logged in to reply to this topic.