Insurance Terms and Definitions

Comprehensive/Major Medical

• Policies that provide fully insured indemnity, HMO, PPO, or Fee for Service coverage for hospital, medical, and surgical expenses.

• Policies that only cover short-term medical needs.

• Policies that are exclusively for federal employees.

• Policies that do not cover surgical expenses.

Credit Accident and Health

• Coverage for borrowers in case of disability due to an accident

• Insurance for property damage during a credit transaction

• A type of loan with lower interest rates

• Coverage for medical expenses unrelated to credit transactions

Credit – Involuntary Unemployment

• Makes loan/credit transaction payments to the creditor when the debtor becomes involuntarily unemployed.

• Allows debtors to avoid payments during voluntary unemployment.

• Increases the interest rate on loans during unemployment periods.

• Provides financial assistance only to those who are voluntarily unemployed.

Covered Lives

• The total number of lives insured, including dependents, under individual policies and group certificates.

• The number of claims filed by policyholders in a year.

• The total amount of premiums collected from policyholders.

• The number of policies issued by an insurance company.

Credit - Credit Default

• Coverage purchased by providers of goods and services extending credit, for indemnification of losses or damages resulting from the nonpayment of debts owed to them.

• A type of insurance that protects consumers from identity theft and fraud.

• A financial product that allows individuals to borrow money for personal use without collateral.

• A service that helps businesses manage their credit scores and improve financial health.

Convertible Term Insurance Policy

• An insurance policy that can be converted into permanent insurance without a medical assessment.

• A type of insurance that only covers accidental death.

• A policy that provides coverage for a fixed term with no option for conversion.

• An insurance policy that requires a medical assessment for renewal.

Credit Insurance

• Policies that provide benefits to a debtor for full or partial repayment of debt upon death.

• Individual or group policies that provide benefits to a debtor for full or partial repayment of debt associated with a specific loan or other credit transaction upon disability or involuntary unemployment of debtor.

• Insurance that covers the cost of credit card debt in case of theft or fraud.

• Policies that offer discounts on loans for individuals with good credit scores.

Crop Insurance

• Coverage protecting against loss or damage to crops from fire, lightning, and tornadoes.

• A type of insurance that only covers damage from natural disasters.

• Insurance that protects against loss of livestock and not crops.

• A policy that guarantees profit regardless of crop yield.

Credit Personal Property Insurance

• Insurance covering motor vehicles and real estate only.

• Insurance written in connection with a credit transaction where the collateral is not a motor vehicle, mobile home, or real estate.

• Insurance that covers only personal liability in credit transactions.

• Insurance that provides coverage for all types of property regardless of collateral.

Credit Disability

• Makes monthly loan/credit transaction payments to the creditor upon the disablement of an insured debtor.

• Provides a one-time payment to the debtor in case of disability.

• Offers a discount on future loan payments for disabled individuals.

• Covers all medical expenses related to the disability.