[an error occurred while processing this directive]

I-Team: Credit Insurance

Updated: Saturday, August 3, 2013 |
I-Team: Credit Insurance story image
(NEWSCHANNEL 3) - The reason we buy insurance is so it will be there when we need it.

However, hundreds of customers of a local bank are finding coverage they purchased is about to be cut off, with little explanation.

This particular insurance is called credit insurance coverage, purchased so that if anything happens to you, your loan still gets paid off.

What happens, though, if you the insurance company doesn't want to stick around to make good on the agreement?

For one customer we spoke to, the news came out of nowhere.

The insurance he took out as part of a home equity loan from Citizens Bank was being cut off.

"Basically, they took away my safeguard," he said. "I don't plan on dying, but I just want the assurance if I do, the house is paid off."

The insurance would have paid off the loan if anything happened to him, and he's been paying into the coverage for the last seven years.

Citizens Bank, where Dennis bought the coverage, said it was pulled because the insurance company behind it, Monumental Life, would no longer provide the coverage.

The bank said it has affected about 200 customers.

According to the State Office of Financial Services and Insurance, "the insurance code does not prohibit companies from terminating a group credidt insurance policy as long as give 30 days notice."

The rules are different for other types of insurance, but spokesperson Jason Moon said Monumental Life followed the requirements.

While it may be legal, it's left customers uncertain.

Monumental Life said in a statement today, it sometimes makes changes in its agreement with certain banks, but the letters Citizens customers received aren't an indication of any widespread changes within the company.

The customer we spoke to also told us that he just receved a call from Monumental offering to go ahead and extend his insurance through the end of his original agreement.
comments powered by Disqus
advertisement

What do you want to see?

If you have a story idea for the I-Team, you can contact us using the form below or by calling 269-388-4612.
Please re-enter the code shown in the image below.

Business News

Last Update on September 15, 2014 07:31 GMT

ECONOMY-THE DAY AHEAD

WASHINGTON (AP) -- The Federal Reserve will release the industrial production numbers for August this morning.

Tomorrow, Fed policymakers will begin a two-day meeting to set interest rates.

Also on Tuesday, the Labor Department will release the Producer Price Index for August.

EUROPE-FINANCE MINISTERS

MILAN (AP) -- European finance ministers are discussing proposals for leveraging private investments to re-launch the continent's moribund economy.

Italian Finance Minister Pier Carlo Padoan told reporters at a meeting Saturday of finance ministers from the 28 EU nations that most of the resources for the envisioned investment fund would come from private sources.

Padoan said the ministers were focusing on ways governments could leverage those investments. That could include incentives, regulatory simplification and better use of public money. Padoan said `'it is up to governments to facilitate private investments."

European ministers are holding their first meeting since European Central Bank chief Mario Draghi outlined a three-pillared strategy to save the eurozone economy.

Saturday's session was focusing on a proposal for 300 billion euros ($388 billion) in investments to revive the economy.

CHINA-ECONOMY

BEIJING (AP) -- China's factory output in August slowed to 6.9 percent from a year earlier amid waning export demand and a slump in real estate development that has undermined steel and cement production, according to data released by the National Bureau of Statistics.

The growth rate for industrial production in August was down sharply from 9.0 percent in July.

In other data, fixed assets investment in non-rural areas of China rose 16.5 percent in the January-August period compared with the same period a year earlier.

Industrial production was slowing amid weaker exports to major markets in Japan, Europe and the United States and the saturation of China's domestic markets for vehicles and mobile phones after years of rapid growth, the bureau of statistics said.

The cooler summer months this year in eastern China, one of the country's most economically active areas, also helped cut the national electricity production by 2.2 percent in August, the first time power production decreased since 2009, the bureau said.

FOOD AND FARM-SLOW MONEY

MONTPELIER, Vt. (AP) -- Consumers who want to support local food and farms now have another way in addition to buying locally produced veggies, meats and cheeses. The so-called "Slow Money" network links entrepreneurs with investors who want to support a stronger local food system.

Since 2010, Slow Money networks and investment clubs around the country, including in Maine, Massachusetts, California, North Carolina, and in cities like Boston and New York, have made a total of $38 million in investments in 350 small food enterprises. Vermont and its vibrant local foods scene is about to launch its own network on Sept. 16.

Many of the Slow Money chapters organize events where food entrepreneurs put on presentations to investors. Then the interested investors deal directly with the businesses.

WEALTH GAP-STATE MONEY

WASHINGTON (AP) -- Income inequality is taking a toll on state governments.

The widening gap between the wealthiest Americans and everyone else has been matched by a slowdown in state tax revenue, according to a report being released today by Standard & Poor's.

Even as income for the affluent has accelerated, it's barely kept pace with inflation for most other people. That trend can mean a double-whammy for states: The wealthy often manage to shield much of their income from taxes. And they tend to spend less of it than others do, thereby limiting sales tax revenue.

As the growth of tax revenue has slowed, states have faced tensions over whether to raise taxes or cut spending to balance their budgets as required by law.

Credit analyst Gabriel Petek says rising income inequality is more than a social issue because it "presents a very significant set of challenges for the policymakers."

Income inequality isn't the only factor slowing state tax revenue. Online retailers account for a rising chunk of consumer spending. Yet they often manage to avoid sales taxes. Consumers are spending more on untaxed services, too.

100 PERCENT RENEWABLE

BURLINGTON, Vt. (AP) -- Vermont's largest city has a new success to add to its list of socially conscious achievements: 100 percent of its electricity comes from renewable sources.

With little fanfare, the Burlington Electric Department crossed the threshold this month with the purchase of a nearby hydroelectric project.

The Washington Electric Co-operative, which serves parts of northern and central Vermont, reached the goal earlier this year.

Some question the accounting methods used to make the claim because the utilities sell the rights to the renewable energy to other utilities. But the utilities then buy less expensive credits to offset the sale.

advertisement