Service Life - Credit Life / Accident & Health FAQ
How do we handle policies on recontracted deals?
The dealership must send in a "voided sale" cancellation form on the original policy and have
the customer answer the Statements of Insurability and sign the new policy with the
recontracted numbers.
Can policies be handwritten?
NO.
Can accident & health coverage be sold separately (without life coverage)?
YES. Accident & health coverage is available for the primary debtor and may be sold without
selling life coverage.
Can the co-debtor purchase accident & health coverage?
NO. Accident & health coverage is only available for the primary debtor.
Can a co-debtor only purchase life insurance?
YES. The co-debtor is eligible to purchase single life insurance coverage. The co-debtor
must answer the health questions and sign the policy on the co-debtor side. He must also
sign the retail installment contract indicating he desires the credit life coverage. It is
also recommended that the dealership attach a copy of the retail installment contract when
sending this policy to the insurance company.
Can the dealer send in a policy with no signature if we already have one on file?
NO. The policy is a contract between the insurance company and the customer. In order for
the policy to be valid, the customer must sign each policy.
If a customer pays off their vehicle loan early, do they get a premium refund?
YES. The customer will need to contact the dealership or the insurance company to request
cancellation.
Does the cancellation form always have to be completed?
YES. The cancellation form must be completed by the dealer, not the customer. The policy
may not be cancelled over the phone. If the loan is paid in full, the dealership must verify
the payoff with the lienholder or obtain a payoff letter from the customer.
If the joint debtors are divorced, can the co-debtor request the cancellation and the refund check?
NO. Even if the divorce decree states that the co-debtor gets the vehicle, the insurance does not change.
This coverage insures lives, not vehicles. If the loan is paid in full, a check will be made payable
to both debtors.