26-21-101. Scope and applicability of chapter. (a) All life insurance and all disability insurance in connection with loans or other credit transactions is subject to this chapter, except that insurance is not subject to this chapter if: (i) It is in connection with a loan or other credit transaction of more than ten (10) years; […]
26-21-102. Definitions. (a) For the purpose of this chapter: (i) “Credit life insurance” means insurance on the life of a debtor pursuant to or in connection with a specific loan or other credit transaction; (ii) “Credit disability insurance” means insurance on a debtor to provide indemnity for payments becoming due on a specific loan or […]
26-21-103. Forms of credit life and credit disability insurance. (a) Credit life insurance and credit disability insurance shall be issued only in the following forms: (i) Individual policies of life insurance issued to debtors on the term plan; (ii) Individual policies of disability insurance issued to debtors on a term plan, or disability benefit provisions […]
26-21-104. Amount of credit life insurance. (a) The initial amount of credit life insurance shall not exceed the total amount repayable under the contract of indebtedness. (b) If an indebtedness is repayable in substantially equal installments, the amount of insurance shall not exceed the scheduled or actual amount of unpaid indebtedness, whichever is greater. (c) […]
26-21-105. Credit disability insurance. The total amount of indemnity payable by credit disability insurance in case of disability, as defined in the policy, shall not exceed the aggregate of the periodic scheduled unpaid installments of the indebtedness, and the amount of each periodic indemnity payment shall not exceed the original indebtedness divided by the number […]
26-21-106. Term of insurance. (a) The term of any credit life insurance or credit disability insurance, subject to the insurer’s acceptance, commences on the date when the debtor becomes obligated to the creditor, or the date when the debtor applies for the insurance, whichever is later, except that if a group policy provides coverage with […]
26-21-107. Provisions of policies and certificates; disclosure to debtors. (a) All credit life insurance and credit disability insurance shall be evidenced by an individual policy, or in the case of group insurance by a certificate of insurance, which individual policy or group certificate shall be delivered to the debtor. (b) Each individual policy or group […]
26-21-108. Filing of policies with commissioner; approval or disapproval; withdrawal of approval. (a) All policies, certificates of insurance, notices of proposed insurance, applications for insurance, endorsements and riders delivered or issued for delivery in this state and the schedule of premium rates pertaining thereto shall be filed with the commissioner. (b) The commissioner, within thirty […]
26-21-109. Schedules of premiums; refunds. (a) Any insurer may revise its schedules of premium rates and shall file the revised schedules with the commissioner. No insurer shall issue any credit life insurance or credit disability insurance policy for which the premium rate exceeds that determined by the insurer’s schedules then on file with the commissioner. […]
26-21-110. Collection of premiums. The insurance premium or other identifiable charge for credit life or credit disability insurance may be collected from the insured or included in the principal of any loan or other transaction at the time the transaction is completed. If included in the principal of the loan or other transaction, a statement […]
26-21-111. Premium not deemed interest; gains to creditor not violation. The premium or cost of credit life or credit disability insurance when issued through any creditor is not deemed interest or charges, or consideration or an amount in excess of permitted charges in connection with the loan or other credit transaction. Any gain or advantage […]
26-21-112. Issuance and delivery of policies. All credit life insurance and credit disability insurance policies shall be delivered or issued for delivery in this state only by an insurer authorized to transact insurance in this state and shall be issued only through holders of licenses or authorizations issued by the commissioner.
26-21-113. Claims. (a) All claims shall be: (i) Promptly reported to the insurer or its designated claim representative, and the insurer shall maintain adequate claim files; (ii) Settled as soon as possible and in accordance with the terms of the insurance contract; (iii) Paid either by draft drawn upon the insurer or by check of […]
26-21-114. Choice of debtor to use existing insurance or new insurance for additional security. If credit life insurance or credit disability insurance is required as additional security for any indebtedness, the debtor, upon request to the creditor, has the option of furnishing the required amount of insurance through existing insurance policies which he owns or […]
