Loan Eligibility Quiz

Study Notes

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

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