Disclosure Requirements for Credit Life Insurance and Accident and Disability Insurance

B

The disclosure requirements for offering credit life insurance and accident and disability insurance to all consumer loan customers are important to ensure that customers are fully informed about the costs and benefits of such insurance products before they agree to purchase them.

Option A, which involves placing a sign on loan officers' desks that provides the disclosures and giving each customer a written disclosure at loan closing, may not be sufficient to meet the disclosure requirements. While providing a written disclosure at loan closing is important, it is also important to ensure that customers are informed of the disclosures at the time of application so they can make an informed decision.

Option B, which involves giving each customer the disclosures orally at the time of application and, if applicable, in writing at loan closing, is a more appropriate procedure to fulfill the disclosure requirements. This approach ensures that customers are informed of the disclosures at the earliest possible time, and also provides a written record of the disclosures that customers can refer to at a later time.

Option C, which suggests that only a written disclosure at closing is necessary, is not adequate as it fails to provide customers with adequate time to consider the disclosures before agreeing to purchase the insurance products.

Option D, which suggests only giving disclosures to persons who actually purchase the insurance, is not appropriate as it does not fulfill the requirement to disclose the costs and benefits of the insurance products to all consumer loan customers.

In summary, Option B is the most appropriate procedure to fulfill the disclosure requirements for offering credit life insurance and accident and disability insurance to all consumer loan customers, as it ensures that customers are informed of the disclosures at the earliest possible time and also provides a written record of the disclosures.