The purposes of this chapter are to: (1) Promote the public welfare by regulating creditor-placed insurance; (2) Create a legal framework within which creditor-placed insurance may be written in this state; and (3) Minimize unfair competitive practices in the sale of creditor-placed insurance.
(a) This chapter applies to an insurer or producer transacting creditor-placed insurance as defined in this chapter. (b) All creditor-placed insurance written in connection with credit transactions for personal, family, or household purposes is subject to the provisions of this chapter, except: (1) Transactions involving extensions of credit primarily for business or commercial purposes; (2) […]
As used in this chapter: (1) “Actual cash value” means the cost of replacing damaged or destroyed property with comparable new property, minus depreciation and obsolescence; (2) “Blanket insurance” means insurance that provides coverage on collateral as defined in a policy issued to a creditor, without specifically listing the collateral covered; (3) “Collateral” means personal […]
(a) Creditor-placed insurance coverage shall not include: (1) Coverage for the cost of repossession; (2) Skip, confiscation, and conversion coverage; (3) Coverage for payment of mechanics’ or other liens that do not arise from a covered loss occurrence; (4) Coverage that requires a debtor’s insurance deductible to be less than two hundred fifty dollars ($250); […]
(a) Creditor-placed insurance shall become effective on the latest of the following dates: (1) The date of the credit transaction; (2) The date prior coverage, including prior creditor-placed insurance coverage, lapsed; (3) One (1) year before the date on which the related insurance charge is made to the debtor’s account; or (4) A later date […]
(a) Premiums for creditor-placed insurance coverage may be calculated based on: (1) An amount not exceeding the net debt even though the coverage may limit the insurer’s liability to the net debt, actual cash value, or cost of repair; or (2) Other premium calculation methods that more closely reflect the exposure of each item insured […]
(a) Creditor-placed insurance shall be set forth in an individual policy or certificate of insurance. (b) A copy of the individual policy, certificate of insurance coverage, or other evidence of insurance coverage shall be mailed, first class mail, or delivered in person to the last known address of the debtor.
(a) All policy forms and certificates of insurance to be delivered or issued for delivery in this state and the schedules of premium rates pertaining thereto shall be filed with the Insurance Commissioner. (b) The commissioner shall within thirty (30) days after the filing of the policy forms and certificates of insurance disapprove a form […]
(a) Within sixty (60) calendar days after the termination of creditor-placed insurance coverage and in accordance with the formulas approved by the Insurance Commissioner, an insurer shall refund any unearned premium or other identifiable charges. (b) (1) Within sixty (60) calendar days after the termination date of creditor-placed insurance coverage, the insurer shall provide to […]
(a) In the event of a loss under the creditor-placed insurance policy, the insurer shall pay, at a minimum, the least of the following, the value of which shall be determined as of the date of loss: (1) The cost to repair the collateral less any applicable deductible; (2) The actual cash value of the […]
(a) In order for the creditor to place insurance on the collateral pledged by the debtor and pass the cost of the insurance on to the debtor: (1) The creditor must have a security interest in the personal property; (2) The credit agreement must require the debtor to maintain insurance on the collateral to protect […]
(a) (1) The entire amount of the premium due from a creditor shall be remitted to the insurer or its producer in accordance with the insurer’s requirements. (2) No commissions may be paid to, or retained by, a person or entity not licensed and appointed in accordance with the Producer Licensing Model Act, § 23-64-501 […]
(a) A creditor shall not impose charges, including premium costs and related interest and finance charges, on a debtor for creditor-placed insurance coverage unless adequate disclosure of the requirement to maintain insurance has been made to the debtor. Adequate disclosure is accomplished if the following occurs: (1) The credit agreement sets forth the requirement that […]
After notice and hearing, the Insurance Commissioner may promulgate reasonable rules to carry out and effectuate the provisions of this chapter.
