WASHINGTON -- The credit life policies that banks and others sell to borrowers are an "insurance rip-off" that consumers should almost always reject, two prominent advocacy groups said on Wednesday.

The Consumer Federation of America and the National Insurance Consumer Organization said they found in a study of the industry that credit life policies pay out only 42% of premium dollars in claims, well below the 70% the groups said is reasonable. The rest goes for commissions and overhead.

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