Podcast
Questions and Answers
What is the maximum amount of Debt Protection provided?
What is the maximum amount of Debt Protection provided?
- $75,000
- $200,000
- $50,000
- $100,000 (correct)
Protection is required to obtain credit.
Protection is required to obtain credit.
False (B)
At what age does Life Plus protection begin to reduce?
At what age does Life Plus protection begin to reduce?
70
You must have a certified diagnosis of a Terminal Illness with a life expectancy of __________ or less.
You must have a certified diagnosis of a Terminal Illness with a life expectancy of __________ or less.
Match the following protected events with their descriptions:
Match the following protected events with their descriptions:
What is the minimum duration for a Family Medical Leave to qualify for protection?
What is the minimum duration for a Family Medical Leave to qualify for protection?
The protection applies during a leave of absence for temporary employees.
The protection applies during a leave of absence for temporary employees.
How many protected payments can be canceled due to qualifying events in a 12-month period?
How many protected payments can be canceled due to qualifying events in a 12-month period?
Which of the following does qualify for protection during a leave of absence?
Which of the following does qualify for protection during a leave of absence?
Flashcards
Terminal Illness
Terminal Illness
A certified diagnosis from a licensed physician, other than the insured or an immediate family member, of a Terminal Illness with a life expectancy of 12 months or less.
Family Medical Leave
Family Medical Leave
An unpaid leave of absence from Active Employment for at least 14 consecutive days to attend to the needs of a newborn, newly adopted or foster child, or to care for a spouse, child or parent with a serious health condition.
Loss of Life of a Non-Protected Dependent
Loss of Life of a Non-Protected Dependent
The death of a non-protected dependent who was a dependency exemption on the insured's tax return in the past 2 years.
Protected Events
Protected Events
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Protection Activation
Protection Activation
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Active Employment
Active Employment
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Non-Protected Dependent
Non-Protected Dependent
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Temporary Employee
Temporary Employee
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Independent Contractor
Independent Contractor
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Joint Borrower
Joint Borrower
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Study Notes
Eligibility Questions
- Disability or Involuntary Unemployment options require answering question 1
- Question 1: Active work status (25+ hours/week) at contract signing date
- Active work: Wages or profit employment
- Inactive work: Sabbatical, strike, vacation, layoff, medical, or disability leave
- Eligibility is for both borrowers if one answers "Yes" to question 1
- Protection is voluntary, not required for credit
- Debt protection maximum: $100,000
- Life Plus protection reduction at 70th birthday
Definitions
- Accidental Injury: unforeseen, unexpected, involuntary, external harm
- Active Employment: 25+ hours/week wages or profit
- Administrator: CUNA Mutual Insurance Agency, Inc. (address provided)
- Advance: Credit extension provided under a loan
- Annual, regularly scheduled, or seasonal layoff: Unemployment due to expected lack of work during certain times of year
- Borrower: Person obligated to repay a loan to the credit union
- Effective Date of Protection: Later of purchase date, reinstatement date, or Advance date
- Loan: Closed-end or open-end credit plan
- Non-Protected Advance: Advance not protected under the contract
- Outstanding Balance: Outstanding loan amount under a protected loan
- Program Fee: Monthly fee for protection applied in arrears (previous month)
- Protected Balance: Principal, interest, program fee, and agreed amounts financed by the borrower and creditor
- Protected Event: Specific occurrences covered under the protection program
- Protected Payment: Minimum payment (principal, interest, and program fee) due when protection starts
- Sickness: Disease, illness, or condition affecting the body with malfunction or discomfort
- Temporary Employee: Limited-term employment assignment or contingent employment with different employers, not paid by the primary employer
- Willful or Criminal Misconduct: Disregard of standards of behavior, intentional negligence, or unlawful act
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Description
Test your knowledge on loan eligibility criteria and definitions. This quiz covers vital concepts such as active work status, accidental injury, and details about loan protection options. Ensure you're informed about the requirements and definitions that can affect your borrowing capacity.
