Mortgage creditor insurance application
This is a document used by an Insurance Company to determine the eligibility of an applicant for creditor insurance. Creditor insurance has become a regular offering in a mortgage transaction. Used to ensure that applicants have protection against the perils associated with death, disability or job loss, it is important to consider.
Failure of the mortgage agent to adequately advise the potential borrower of his or her option to obtain creditor insurance can result in the agent being sued by the borrower if the borrower was not adequately insured and one of the covered perils occurred. To protect both the borrower and the agent, the agent must inform the borrower of the availability of the insurance and have the borrower either waive the insurance or apply for it.
Success Tip – Answer honestly in the creditor insurance application
Be sure to advise your applicant to answer all of the questions in the application honestly. If your applicant answers “yes” to any of the health questions the applicant must provide further information and explanations. Once the insurance company has reviewed the application it may then request additional information or medical investigation, such as a doctor’s report.
The following document is a sample of a typical creditor insurance application.