Debt Protection Terms & Conditions
This Product is Optional. Your purchase of the Debt Protection Plan (“Plan”) is optional. Whether or not you purchase this protection will not affect your application for credit or the terms of any existing credit agreement you have with DR Bank [and Viva Finance as its successor in interest] (“Us” or “We,” or “Creditor”).
Termination of the Plan. You have the right to terminate the Plan at any time. If you terminate within 30 days of the first time we bill you, we will refund any fees paid. We have the right to terminate the Plan by giving you written notice at least 30 days in advance of the termination. See the “Termination of the Plan and Change in Terms” section for other ways the Plan may terminate.
Benefits May Be Denied. Even if you are eligible to purchase this Plan, there are eligibility requirements, conditions, and exclusions that could prevent you from receiving cancellations under the Plan. This agreement will provide you with a complete explanation of all eligibility requirements, conditions, and exclusions for the Plan. Example: If you received medical treatment within the 6 months before enrolling, and you become disabled for that condition within the 6 months after enrolling, you will not qualify for Disability cancellations (this is called a “pre-existing condition”).
Benefit Chart - Requirements, Conditions, and Exclusions
The following describes the types of Protected Events, the amounts cancelled, and the exclusions and conditions that apply:
Other Important Terms
FEES AND CANCELLATIONS
What amounts will be cancelled? For any Protected Event, we will cancel the minimum regularly scheduled monthly loan payment due as of the month in which your Protected Event occurs, up to the maximum listed on your Benefit Chart. The amounts cancelled will include principal, interest, the monthly Plan fee and any amounts originally financed as part of the loan. We will not cancel late fees or other fees, real estate taxes or property insurance premiums; or any past due amounts. If you have a balloon loan, the balloon payment will only be covered for a Protected Event that cancels the outstanding balance.
How is my Plan Fee calculated and collected? The Plan Fee is calculated by applying the rate per $100 (or any fraction thereof) of your monthly payment and will be charged and collected monthly. The fee is added to your outstanding balance and becomes part of your monthly loan payment. If you purchase the Plan after your loan has closed, we may increase your minimum monthly payment or extend the term of your loan.
What are the tax implications? You may be subject to federal, state and local taxes on the amount of your cancelled loan payment or balance. You should consult your tax advisor. We do not provide you with guidance on the tax implications, if any, of a cancelled debt.
FILLING A CLAIM
How do I file a claim? Contact us at XXXXXXX. You must be able to verify the Protected Event to our satisfaction. If your delay in filing a claim prevents us from determining eligibility under the Plan, we will not make any cancellations.
In the event of a claim, we may ask you to sign a medical release and provide your past medical history. You also authorize the release of this addendum to the administrator for the purpose of verifying and processing your claim.
Can you dispute my coverage? Yes. If within the first 2 years of this Plan, we find that you did not meet the eligibility requirements at the time of your application, your protection under the Plan will be removed, you will receive a refund of fees paid, and an otherwise valid claim will be denied. We can also deny a claim for the reasons listed in the Benefit Chart.
Do I have to make payments while my claim is being processed? Yes. While we are processing your claim, you must make your monthly payment on your loan by the due date. Once cancellations begin, you are responsible for any amounts that are not cancelled.
What if I become disabled again or lose my job again? If you become disabled again with the same condition within 6 months of having recovered, or you become involuntarily unemployed again within 6 months of returning to full-time work, this will be a continuation of the first event. This means that if the maximum number of cancellations was already reached, we will not make any additional cancellations. But if you become disabled again with the same condition more than 6 months after your recovery, or you become involuntarily unemployed again more than 6 months after you return to full-time work, this will be a new event. It will also be a new event if you become disabled again with a different condition. This means you start a new set of cancellations, up to the maximums listed in your Benefit Chart.
What if I have an unrelated injury or sickness while I am disabled? If you are disabled (“original occurrence”) and sustain another sickness or injury which would also be disabling, the second sickness or injury will not be considered a new occurrence of Disability. This means that you will receive cancellations for the second sickness or injury only if you did not reach your maximum per-occurrence cancellations for the original occurrence.
TERMINATION OF THE PLAN AND CHANGE IN TERMS
How can the Plan be terminated? (a) You may terminate this Plan at any time by writing us at XXXXXXX. If you do so within 30 days of the first time we bill you, we will credit your loan account for any fees charged. (b) We can terminate this Plan by giving you written notice at least 30 days in advance of the termination. Termination will be effective on the first of the month after you receive notice of termination. Fees for the month in which notice of termination is received will still be due and collected from the loan payment. (c) Your Plan will be terminated immediately and without notice: (1) If your loan is paid off, refinanced with another lender, sold, transferred, or discharged. (2) If your loan or line of credit payments are past due 90 days or more (if you bring your loan current after your Plan has been terminated for delinquency, you must reapply for the Plan). (3) You fail to pay the Plan fee. (4) When you reach age 70 or die. For joint protection, when the oldest borrower reaches age 70, the oldest borrower’s protection terminates. Protection will automatically convert to Single Protection for the younger borrower (and the monthly fee will be adjusted accordingly). Once the younger borrower reaches age 70, all protection will terminate. If either borrower dies the protection for that borrower will terminate. or (5) When the protected balance is paid off under the Plan or all maximum cancellations are reached.
Can you change the fee and terms of this Plan? Yes. We can change the terms of this Plan, including the fee, at any time. If we do, we will give you prior notice and a chance to terminate the Plan without penalty.
What if I refinance or modify my loan? If you refinance your loan with another lender, this Plan will terminate; if we are making cancellations when you refinance, cancellations will cease.
If you refinance the loan with us so that you have a new loan with us, this Plan will terminate, and you will need to complete a new debt protection application and requalify for protection if you wish to have debt protection on the new loan. However, if we are making cancellations at the time you refinance your loan with us, those cancellations will continue on the new loan in accordance with this agreement.
If you modify the terms of your loan without refinancing, coverage will continue in accordance with this Plan.
What if my loan ends while I am receiving cancellations under the Plan? Cancellations will stop if the loan is paid off, refinanced with a different lender, sold, transferred, or discharged, even if you haven’t received all of your cancellations.
Definitions
Actively working 24 or more hours per week and full-time employment: This means that you are actively working for income for 24 hours or more per week. Working means actually performing your job duties and not off of work due to leave of absence; layoff; routine or seasonal work interruption; or any other reason.
Effective Date: This means the date your Plan becomes effective, which is the later of: (1) the date you sign the Plan application; or (2) the date the loan funds are disbursed.
Pre-existing condition: This means a condition for which you received medical treatment or advice or had diagnostic tests for the same or related condition in the 6-month period prior to the Effective Date. This exclusion only applies if the Protected Event begins within the 6 months after the Effective Date. Example: if you break your leg within the 6 months before the Effective Date, and you become disabled because of that broken leg within 6 months after the Effective Date, we will not make any cancellations. However, if you become disabled 7 months after the Effective Date, we will make cancellations as described in the Benefit Chart.