By the Division of Banks

Authority To Offer Unemployment Insurance To A Co-Borrower

It is the position of the Division of Banks that Mass. Gen. Laws ch. 255 § 12G authorizes a creditor to offer optional involuntary unemployment insurance in connection with a consumer loan to a "borrower" or "borrowers" in the loan transaction. The words "borrower" or "borrowers" would include a co-borrower in such a transaction. Therefore, an entity may offer optional involuntary unemployment insurance to co-borrowers in connection with a loan transaction for personal, family, or household purposes under Mass. Gen. Laws ch. 255 § 12G.