The Provision That Allows a Lender to Convert a Loan

question 32

Multiple Choice

The provision that allows a lender to convert a loan into saleable certificates with the same terms and conditions is called:

• A) assignable loan credentials
• B) convertible loan credentials
• C) transferable loan certificates
• D) novation

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Definitions:

Primary Payer

The insurance policy or program that pays first on a claim for medical care, determining the extent of coverage before any secondary payer contributes.

Employer-provided Insurance

Health insurance coverage provided to employees (and often their families) as part of an employment benefit package.

Birthday Rule

A rule that states that the insurance policy of a policyholder whose birthday comes first in the year is the primary payer for all dependents.

Birthday Rule

An insurance policy determination rule that establishes priority of coverage for a child when covered by both parents' plans; typically, the parent whose birthday occurs first in the calendar year holds the primary plan.