Response to MIG pay-out

This will be the pro-rata adjustment for the balance of the MIG policy that *you* paid. The one off premium paid covers the whole amortization period - so if the mortgage account was redeemed (which by means of the repo it was) the policy premium can be partially refunded. Under Rights of Subrogation and the mortgage default terms and conditions, the adjustment reverts to the Lender. If this was a centralised lender, a little birdie told me that a certain insurance Co refused to honour a few payouts after 1996 on the grounds of "inadequate risk assessment" when these Lender's lent the money. Read "conned innocent people into very dodgy deferred/high interest mortgages". Allegedly.

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