This new loan coverage is NOT an insurance product, therefore not governed by normal Insurance regulations/audits. It is designed to cover situations not normally covered by Disability/Life Insurance. For example: divorce, loss of a job, drop in income. It uses a Level Rate calculation and cannot have the words "insurance" or "premium" used on the posting of the debit to the loan.
Although it may currently be used as a "self-insured" offering, insurance companies warrant the loan disclosure forms as compliant. CU*BASE supports debt protection and is certified by CUNA using their amortization and fee posting specifications.