- 4 - arranged financing. Berger received gross income from dealer- arranged financing of $261,926. Virtually all new motor vehicle dealers in Michigan and other states offer credit life and disability insurance (credit insurance) to their customers who buy vehicles with dealer- arranged financing. Credit insurance is also available from banks, credit unions, and other lenders. Credit insurance is available to installment buyers under the age of 70 years without a physical examination, provided the buyer's answers to a health questionnaire are satisfactory. To purchase credit disability insurance, the buyer must be actively employed and not on leave at the time of application for the insurance. Benefits from the credit insurance policies, in the event of disability or death, are payable to the financial institution that holds the installment sale purchase agreement, not the buyer. Benefits that exceed the outstanding indebtedness, if any, are payable to the second beneficiary or the estate of the buyer. Disability payments are prorated for each day the buyer is disabled and paid to the creditor up to a maximum of the full monthly vehicle installment payment. Only the buyer, not any co-obligor, is eligible for disability insurance. Credit life and credit disability programs are written as group policies in which the buyer enrolls, rather than as individual policies. The group policy is issued to the dealer.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011