Maintaining a Member's Credit Life and Credit Disability Insurance
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For more information about insurance, see Insurance.
The Loans – Insurance tab lets you set up and maintain credit life and credit disability insurance for the member loan. To access the Insurance tab, under Member Services on the Portico Explorer Bar, click Account Information. The Overview tab appears on top. Click the Loans tab. Locate the member using the search tool on the top menu bar. Select the down arrow to select the search method, then enter the search criteria. Select the green arrow or press ENTER to locate the member.
Select the Select a Loan Account down arrow to select the loan note number and description. Then, select the green arrow. The General tab appears on top. Select the Insurance tab.
How do I? and Field Help
The Earliest Possible Insurance Date field indicates the earliest possible date that insurance can be elected on the loan. This field will display a date regardless if insurance has been elected or not. For new loans, this will be the effective date of the loan when the loan is booked. For existing loans (before the addition of the field), the Earliest Possible Insurance Date field will display the last advance date for the loan. Reporting Analytics: Insurance Earliest Date (Loan Base subject in the Loan folder and the ME Loan Base subject in the Month-end Information\Loan Month-end folder)
Complete the following fields to set up credit life insurance for the member loan.
| Field | Description |
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The type of credit life insurance or group loan protection coverage. The Credit Life Insurance check box in the Insurance section on the Credit Union Profile – Loans tab indicates whether Portico calculates and posts credit life insurance (CLI) during the month-end back-office cycle. The Contract field in the Insurance group box on the Loan Profiles – Additional Information tab specifies the type of Credit Life Insurance contract available for this loan type. On member-pay insurance loan types that are not covered, leave this field blank. If the Contract field in the Insurance group box on the Loan Profiles – Additional Information tab indicates group-pay loan protection (option 1, 2, 3), the Life Coverage Option field on the New Loan – Setup tab defaults to the code in the Protection field in the Insurance group box on the Loan Profiles – Additional Information tab. The valid options are: Group-pay Loan Protection: Valid codes for the FIRST digit are: 0 = Member is not qualified 1 = Personal loan 2 = Real estate loan 3 = Charged-off loan 4 = Other type of loan Valid codes for the SECOND digit are: 0 = Loan is covered 1 - 9 = Loan disqualified - credit union-defined A - F = Loan disqualified - credit union-defined Member-pay Loan Protection: Valid codes for the FIRST digit are: 0=No coverage 1=Single Life-loan add-on - owner 2=Single Life-share withdrawal - owner 3=Joint Life-loan add-on - owner 4=Joint Life-share withdrawal - owner 5=Excess Credit Life - loan add-on 6=Excess Credit Life - share withdrawal E=Single Life - loan add-on - co-borrower F=Single Life - share withdrawal - co-borrower G=Joint Life-loan add-on - 2 co-borrowers H=Joint Life-share withdrawal - 2 co-borrowers The SECOND digit must be blank. Note: The above codes are valid only if Portico calculates and posts the premiums. If Portico sends a transmission to the insurance company who then calculates and returns a transmission to Portico for posting, use the codes provided by the insurance company. Note: If a value of E, F, G, or H is chosen for insurance coverage on the New Loan –Setup tab, the New Loan - Borrower Information tab will automatically appear for the borrower's information to be completed. The loan will not book without the borrower information. If the Credit Life Insurance is member-pay or member and credit union-pay, Portico uses the 485 Report. If you pay the entire premium for the Credit Life Insurance (group-pay), Portico calculates and posts the premiums using the Group Loan Protection Insurance Report 480. The total premium payment for a loan is calculated by multiplying the loan's insurable balance by the appropriate premium rate. The rate used depends on the type of coverage for the loan, single life or joint life. To determine the member’s premium payment, Portico calculates the total premium for the loan, multiplies it by the credit union's percentage (if any), rounds to the nearest cent and subtracts this credit union-paid amount from the total premium. The premium can be paid by share withdrawal or loan add-on:
The 580 and 584 Report Rules contain the processing criteria for CLI premiums calculated by the insurance company. Length: 2 alphanumeric Keyword: LP |
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The coverage options for group-pay credit life insurance on the loan. If Portico calculates the premiums, the valid values are: 0 - Loan is covered |
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Select the Joint to Single to No Coverage check box to select Joint to Single to None CLI coverage. When one of the borrowers has reached maximum age, the coverage will automatically change to single coverage. If the second borrower reaches maximum age before coverage is completed, then premiums are no longer calculated and posted. The New Loan - Borrower Information tab will automatically appear to enter the co-borrower's information including the birth date (required). If not selected, when the owner of the loan reaches maximum age, coverage is no longer calculated and posted. For loans coded with a Life Coverage Option of G or H, the system will no longer calculate and post premiums when the first borrower flagged on the Loan Borrowers/References dialog box reaches maximum age. (System default.) Keyword: LF |
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The amount of the loan balance not covered by the loan protection life insurance. On standard life insurance contracts, this amount is recalculated each month-end. On variable contracts, the excess is calculated when the loan is set up. Length: 9 numeric including decimal Keyword: LE |
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The date that level rate credit life insurance was elected on the loan. For new loans, Portico will use the date in the Earliest Possible Insurance Date field as the election date. If credit life insurance is not elected, the date will be blank. For existing loans with insurance (before the addition of the fields), the date from the Earliest Possible Insurance Date field will be entered in the Coverage Elected field. The Coverage Elected field can be maintained if the Credit Life Truncated Coverage Processing field is Maximum Months and Duration. Select the down arrow to choose the date that level rate credit life insurance was elected from the pop-up calendar or enter a the date in MM/DD/YYYY format. Keyword: EL Reporting Analytics: CLI Election Date (Loan Base subject in the Loan folder and the ME Loan Base subject in the Month-end Information\Loan Month-end folder) |
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Indicates how credit life insurance will be determined and calculated when elected on a closed end loan. The Support Truncated Coverage for Level Rate Insurance checkbox on the Credit Union Profile - Loans tab dictates the valid values for the Truncated Coverage Processing field on the Loans - Insurance tab. The valid options for level rate credit life insurance:
Keyword: LT Credit Life Maximum Months Insured Keyword: TL (field not displayed on screen, only on loan MM5A and loan inquiry sniffer) Reporting Analytics: CLI Flag and CLI Max Term (Loan Base subject in the Loan folder and the ME Loan Base subject in the Month-end Information\Loan Month-end folder) |
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The cost of credit life insurance for the purpose of paying off the loan in case of death. The cost is added to the loan. Keyword: IA Length: 7 numeric including decimal |
To cancel credit life insurance coverage, select the Date Coverage Canceled down arrow to select the cancel date from the pop-up calendar or enter the date in MM/DD/YYYY format.
For debt protection insurance coverage, complete the Debt Protection field.
| Field | Description |
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The type of debt protection coverage on the loan. Debt protection codes are determined during your implementation. You can customize this field using the Customized Fields window. The Debt Protection checkbox on the Credit Union Profile - Loans tab must be selected to see the Debt Protection field on the New Loan - Setup tab and the Loan Insurance tab. To add insurance to an existing loan, enter 642 TN MBR NOTE;DB xx where TN is the teller number, MBR is the member number, NOTE is the loan note number, and xx is the debt protection code (for example, 642 JM 2212004 AUTO;DB AA). Keyword: DB | Length: 2 alphanumeric Reporting Analytics: Debt Protection Code (Loan – Loan Base and Month-end Information – Loan Month-end – ME Loan Base) |
Complete the following fields to set up credit disability insurance for the member loan.
| Field | Description |
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The type of credit disability insurance coverage on the loan. The valid options are: 0 - No coverage. System default. 1 - Single CDI - loan add-on-owner 2 - Single CDI - share withdrawal-owner 3 - Single CDI - mbr disabled, premium waived - owner 4 - No coverage - disqualified E - Single CDI - loan add-on - co-borrower F - Single CDI - share withdrawal - co-borrower H - Single CDI - mbr disabled, premium waived - co-borrower J - Joint CDI - loan add-on - owner K - Joint CDI - share withdrawal - owner M - Joint CDI - both disabled, premium waived - owner T - Joint CDI - loan add-on - 2 co-borrowers V - Joint CDI - share withdrawal - 2 co-borrowers W - Joint CDI - both disabled, premium waived - 2 co-borrowers Note: The above codes are valid only if Portico calculates and posts the premiums. If Portico sends a transmission to the insurance company who then calculates the premiums and returns the transmission to Portico for posting, use the codes provided by the insurance company. Note: If a value of E, F, H, T, V, or W is chosen for insurance coverage on the New Loan –Setup tab, the New Loan - Borrower Information tab will automatically appear for the borrower's information to be completed. The loan will not book without the borrower information. The 130 Report Rules contain the processing criteria for CDI premiums calculated and posted by Portico. The 580 and 581 Report Rules contain the processing criteria for CDI premiums calculated by the insurance company. Members may make premium payments by either share withdrawal or loan add-on and may change the payment method at any time.
Length: 1 alphanumeric Keyword: DC |
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Select the Joint to Single to No Coverage check box to select Joint to Single to None CDI coverage. When one of the borrowers has reached maximum age, the coverage will automatically change to single coverage. If the second borrower reaches maximum age before coverage is completed, then premiums are no longer calculated and posted. The New Loan - Borrower Information tab will automatically appear to enter the co-borrower's information including the birth date (required). If not selected, when the owner of the loan reaches maximum age, coverage is no longer calculated and posted. For loans coded with a Disability Coverage Option of T, V, or W, the system will no longer calculate and post premiums when the first borrower flagged on the Loan Borrowers/References dialog box reaches maximum age. (System default.) Keyword: CF |
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The date that level rate credit disability insurance was elected on the loan. For new loans, Portico will use the date in the Earliest Possible Insurance Date field as the election date. If credit disability insurance is not elected, the date will be blank. For existing loans with insurance (before the addition of the fields), the date from the Earliest Possible Insurance Date field will be entered in the Coverage Elected field. The Coverage Elected field can be maintained if the Credit Life Truncated Coverage Processing field is Maximum Months and Duration. Select the down arrow to select the date that level rate credit disability insurance was elected from the pop-up calendar or enter a the date in MM/DD/YYYY format. Keyword: ED Reporting Analytics: CDI Election Date (Loan Base subject in the Loan folder and the ME Loan Base subject in the Month-end Information\Loan Month-end folder) |
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Indicates how credit disability insurance will be determined and calculated when elected on a closed-end loan. The Support Truncated Coverage for Level Rate Insurance checkbox on the Credit Union Profile - Loans tab dictates the valid values for the Truncated Coverage Processing field on the Loans - Insurance tab. The valid options for credit disability insurance are:
Keyword: DT Credit Disability Maximum Months Insured Keyword: TD (field not displayed on screen, only on loan MM5A and loan inquiry sniffer) Reporting Analytics: CDI Flag and CDI Max Term (Loan Base subject in the Loan folder and the ME Loan Base subject in the Month-end Information\Loan Month-end folder) |
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The cost of disability insurance for the purpose of paying off the loan in case of disability. The cost is added to the loan. Keyword: DX Length: 7 numeric including decimal |
To cancel credit disability insurance coverage, select the Date Coverage Canceled down arrow to select the cancel date from the pop-up calendar or enter the date in MM/DD/YYYY format.
For vehicle comprehensive/collision insurance, enter the cost of comprehensive/collision insurance purchased by the credit union for a vehicle that is collateral on the loan in the VSI Purchase Amt field (Keyword: VA / Length: 7 numeric including decimal). The cost is added to the loan. This field label can be customized using the Customized Fields window. To cancel the comprehensive/collision insurance, select the VSI Canceled down arrow to select the date from the pop-up calendar or enter the date in MM/DD/YYYY format (Keyword: VD). This field label can be customized using the Customized Fields window. To change an existing record using the keywords, enter 64M TN MemberNumber NoteNumber C;VA Amount;VD Date (for example, 64M 2212004 LOAN1 C;VA 5000.00;VD 102819). To add a new record, enter 64M TN MemberNumber NoteNumber A;VA Amount;VD Date (for example, 64M 2212004 LOAN1 A;VA 5000.00;VD 102819).
For GAP insurance on the loan, enter the cost of GAP insurance on the loan in the GAP Purchase Amt field (Keyword: GX / Length: 7 numeric including decimal). The cost is added to the loan. This field label can be customized using the Customized Fields window. To cancel the GAP insurance, select the GAP Canceled down arrow to select the date GAP insurance was canceled on a loan from the pop-up calendar or enter the date in MM/DD/YYYY format. This field label can be customized using the Customized Fields window.
To add the cost of a service contract or warranty on the vehicle, enter the cost of a warranty purchased by the borrower from the dealer in the Service Contract Amount field (Keyword: SV / Length: 7 numeric including decimal). The cost is added to the loan. This field label can be customized using the Customized Fields window. To cancel the service contact, select the Service Contract Canceled down arrow to select the date the service contract was canceled from the pop-up calendar or enter the date in MM/DD/YYYY format. This field label can be customized using the Customized Fields window.
Select Save to save your changes.
To view the Insurance tab, you must be part of the Lending - Clerk, Lending - Supervisor, or Lending - Officer security group, or add the Loans - Tab - Insurance - View Only permission to your credit union-defined security group. To maintain the Insurance tab, you must be part of the Lending - Supervisor or Lending - Officer security group, or add the Loans - Tab - Insurance - Maintain permission to your credit union-defined security group.
- Group Loan Protection Insurance Report 480
- Credit Life Insurance Report 485
- Monthly Renewable Credit Disability Insurance Report 130
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