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Insurance Business | 19 Sep 2016, 09:00 AM Agree 0
Finance experts call for better disclosure of lenders mortgage insurance to protect consumers
  • JR | 19 Sep 2016, 12:58 PM Agree 0
    Have never understood LMI. So in simplest terms, I pay massive insurance premium to protect the bank in case of default and my house is sold for less than what the mortgage is. The bank makes a claim against the insurer (who picks up a premium remember) for that risk. If however there is a shortfall, then the insurer chases me for the claimable amount, which they just had to pay the bank. Please explain??? So where is the risk for the bank or the insurer, therefore why do I pay a premium if there is no risk to either the bank or insurer.
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