OTIS Federal Credit Union offers credit life, credit disability, vehicle service contracts, and GAP coverage in certain circumstances. The option of purchasing these products will be offered to every eligible member, and whether you choose to purchase these additional products or not is at your discretion.
Credit Life Insurance
You may purchase credit life insurance for most types of loans at OTIS. Credit life insurance provides insured borrowers with life insurance that pays off the balance of the loan in event of death.
Credit Disability Insurance
You may purchase credit disability insurance for most types of loans at OTIS. Credit disability insurance provides for the continued payment of the insured borrower’s loan in the event of total disability resulting from a covered accident or illness.
Vehicle Service Contract
You may purchase a vehicle service contract for qualifying collateral. VSCs pay for the cost of parts and labor during the repairs or replacement of major component parts when in conjunction with the repair of a covered item.
Guaranteed Auto Protection
You may purchase GAP coverage for qualifying loans. GAP helps to cover the difference between the primary insurance company settlement for the covered collateral and the loan balance at the date of loss. GAP may be financed with the loan.
Disclosures
- Insurance products sold through or in the Credit Union are not insured by the National Credit Union Administration and are not issued, guaranteed, or underwritten by the Credit Union or the National Credit Union Administration or any other federal government agency; and
- There is no requirement or obligation to purchase insurance or other products from the Credit Union or any subsidiary, affiliate, or particular unaffiliated third party as a condition to obtaining a loan, and a decision as to insurance agents will not affect credit terms in any way. The Credit Union may not condition an extension of credit on an agreement not to obtain, or a prohibition on the applicant from obtaining an insurance product or annuity from an unaffiliated entity; and
- The Home Ownership & Equity Protection Act (HOEPA) requires that the Credit Union disclose whether credit insurance or debt cancellation insurance is included in the “total amount borrowed” in compliance with Regulation Z.
