Introduction to Line of Credit Insurance

For a better understanding, the user has to be familiar with is familiar with the Temenos Transact customer, account, limit, collateral modules and AA.

Banks have CRI Insurance (third party insurance provider) products that are related to different types of credit facility. There are varying attributes surrounding coverage and eligibility allowable combination of insurance types. The system has an option to issue, maintain or cancel these insurance products and necessary validations are created during creation of these Insurance products.

The LOC (Letter of Credit) Insurance link development enables a bank or financial institution to issue, maintain or cancel the below mentioned insurance products:

• Single Premium Insurance.
• Line of Credit Insurance (coverage =<100k).
• Line of Credit Insurance (coverage =<100k).
• Mortgage Insurance.
• Outstanding Balance Insurance (coverage > 100k).
• Commercial LOC Level Coverage.
• Legacy MPM Insurance (Also known as legacy OB insurance).
• Revolving Term Loan Insurance.

The LOC insurance development facilitates issuance, maintenance and cancellation of insurance products in Temenos Transact. The CRI Insurance products are maintained in different ways based on loan products as detailed below:

• Functionality covered in LOC insurance (AA Accounts) is: opening of insurance product using arrangement account which is currently done using normal Temenos Transact accounts.
• Transferring of insurance to another arrangement account.
• Associated signers of the account gets defaulted while creation of insurance.