CONSUMERS IN HURRICANE STRICKEN STATES URGED TO MAKE STORM RELATED CREDIT INSURANCE CLAIMS

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Contact: William F. Burfeind
Executive Vice President
(312) 939-2242

Consumers with credit insurance or other forms of debt protection in Texas, Louisiana and other states recently struck by Hurricanes Gustav and Ike and the earlier Hurricane Fay in Florida are urged to file storm related claims, the Consumer Credit Industry Association (CCIA) said today.

“We extend our sympathy to the hundreds of thousands of people whose lives have been disrupted and who have experienced considerable damage to their homes and communities,” said William F. Burfeind, executive vice president of the CCIA. “As they begin to put their lives back in order we urge them to file appropriate credit insurance or debt cancellation or suspension claims for property lost or damaged in the storms or for health, accident, involuntary unemployment or, in the very worst instance, death claims.”

The CCIA executive advised consumers to reflect on whether they purchased credit insurance or debt protection when they borrowed. Burfeind said, “Consumers who are uncertain if they have credit insurance or debt protection agreements assuring repayment of their loans or who seek assistance in filing claims, can ask their lenders including banks, credit card issuers and consumer finance companies for guidance.”

Burfeind noted that the Louisiana Department of Insurance issued emergency rules keeping all insurance coverage in effect for victims of Hurricane Gustav in 36 of the state’s parishes even if they are unable to make timely premium payments because of problems caused by the storm and keeping in place all insurance coverage that was effective on Aug. 30. “These rules apply to credit insurance coverage as well as all other types of insurance,” Burfeind noted.

He said, “It is events like these severe hurricanes that insurance is designed to provide protection against, particularly for damage or loss of property but also for other unforeseen events related to the impact of natural disaster,” said Burfeind.

Credit insurers provide credit life insurance to repay debt if the insured borrower dies; credit disability insurance to repay debt if the insured borrower becomes sick or disabled; Involuntary Unemployment Insurance to make insured debt payments for a specified period of time in the event of involuntary loss of employment, and credit property insurance to insure property purchased with a consumer loan or insured property that secures a consumer loan.

Debt cancellation and debt suspension contracts are non-insurance agreements between consumers and lenders that provide similar protections for repayment of debt.

Based in Chicago, the 120-member CCIA is a trade association of insurance companies and other financial service providers selling or servicing consumer credit insurance, credit related lines of insurance, and other consumer credit protection products including debt cancellation and suspension contracts or agreements.