In a commentary article posted on Credit Union Times our CEO, Richard Gallagher, discusses why credit unions should keep their forms separate from their insurance. Trust your forms to the forms specialist and the insurance to the insurance specialist. Credit Unions keep insurance separate from your forms.
In 2016, the net premium written by the U.S. credit insurance industry amounted to approximately 1.1 billion U.S. dollars. Now that’s a lot of money. How many of those dollars were actually used to subsidize the cost of your forms?
Let’s be real about the situation. In many cases (perhaps even a majority-plus), you might be offered what may appear as a “bargain” for your forms when bundled with you offering their insurance to your members. It’s likely you’ll find those very same forms unavailable without the insurance. Why? Because often the insurance premiums you’re collecting on behalf of the carrier are being used to offset the cost of the forms.
Richard Gallagher
To read more about how your credit union can stay compliant and improve it’s future go check out the CU Times article and then check out our lending documents for your credit union.
(note: this is an older blog entry and has been edited since originally posted.)
