Insurance Disclosures on Business Purpose Loan

Answered by:

Question:

Do we need to provide insurance disclosures to a customer who purchased credit life A/H insurance on a loan with a business related purpose?

Answer:

Answer by Richard Insley:If this question refers to the boilerplate included in the TIL disclosure, the answer is that Reg Z does not apply to business credit. Since state insurance laws may require disclosure beyond TIL, they should be checked.

Answer:

Answer by Dan Persfull:If you are referring to the Consumer Protection in Sales of Insurance disclosures, refer to the FDIC Rules and Regs 343.20(d).

First published on BankersOnline.com 7/14/08