CH11 Flashcards
1
Q
What is PPI/MPPI?
A
General insurance policy written on annual, reviewable basis that will pay a monthly benefit equal to 100/125% of mortgage costs paid if insured is unable to work due to sickness, accident or disability or involuntary redundancy
2
Q
What is ASU?
A
Virtually identical to PPI except not designed exclusively for mortgage costs, may inc lump sum payments
3
Q
When must buildings insurance be included in APRC?
A
If purchase through lender’s agency is compulsory, must be included in premiums and in ESIS
4
Q
What is higher lending charge?
A
In order to reduce risk, lenders make HLC where high LTV. Buys insurance cover of forced sale.
5
Q
What excess should apply to higher lending policies set by ABI?
A
20%
