24-A §2851-A. Short title
§2851-A. Short title This chapter may be known and cited as the “Consumer Credit Insurance Act.” [PL 2001, c. 138, §5 (NEW).] SECTION HISTORY PL 2001, c. 138, §5 (NEW).
24-A §2851. Scope of provisions
§2851. Scope of provisions All life insurance and all health insurance in connection with loans or other credit transactions, credit property insurance, credit involuntary unemployment insurance and other consumer credit insurance specifically authorized by the superintendent in rules adopted pursuant to section 2865 are subject to this chapter, except the following: [PL 2001, c. […]
24-A §2852. Purpose; construction
§2852. Purpose; construction The purpose of this chapter is to promote the public welfare by regulating consumer credit insurance. Nothing in this chapter is intended to prohibit or discourage reasonable competition. This chapter must be liberally construed. [PL 2001, c. 138, §6 (AMD).] SECTION HISTORY PL 1969, c. 132, §1 (NEW). PL 2001, c. […]
24-A §2853. Definitions
§2853. Definitions For the purpose of this chapter: [PL 1969, c. 132, §1 (NEW).] 1. “Credit life insurance” means insurance on the life of a debtor pursuant to or in connection with a specific loan or other credit transaction. [PL 1969, c. 132, §1 (NEW).] 2. “Credit health insurance” means insurance on a […]
24-A §2854. Forms available
§2854. Forms available Consumer credit insurance may be issued only in the following forms: [PL 2001, c. 138, §8 (AMD).] 1. Individual life. Individual policies of life insurance issued to debtors on the term plan; [PL 1969, c. 132, §1 (NEW).] 2. Individual accident and health. Individual policies of health insurance issued to […]
24-A §2855. Amounts of insurance
§2855. Amounts of insurance 1. Credit life insurance. A. The amount of credit life insurance shall at no time exceed the unpaid amount financed plus earned interest and an allowance for delinquencies as determined by the superintendent or, in the case of open-end credit, the balance upon which a finance charge may be imposed, […]
24-A §2856. Term of insurance
§2856. Term of insurance 1. The term of credit life insurance or credit health insurance shall, subject to acceptance by the insurer, commence on the date when the debtor becomes obligated to the creditor; except that where a group policy provides coverage with respect to existing obligations, the insurance on a debtor with respect to […]
24-A §2857. Policy provisions; delivery or disclosure to debtors
§2857. Policy provisions; delivery or disclosure to debtors 1. Policy or certificate delivered. All consumer credit insurance must be evidenced by an individual policy, or in the case of group insurance by a certificate of insurance, which individual policy or group certificate of insurance must be delivered to the debtor. [PL 2001, c. 138, […]
24-A §2858. Filing, approval and withdrawal of forms, rates; appeals
§2858. Filing, approval and withdrawal of forms, rates; appeals 1. Forms filed. 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 schedules of premium rates pertaining thereto shall be filed with the superintendent. [PL 1973, c. 585, §12 […]
24-A §2859. Premium rates; refunds; accounts credited when insurance not issued
§2859. Premium rates; refunds; accounts credited when insurance not issued 1. Rates filed; life and health. Any insurer may revise its schedules of premium rates from time to time, and shall file such revised schedules with the superintendent; however, no upward revision in insurance charges to debtors may be made in connection with closed-end credit […]
24-A §2860-A. Commissions
§2860-A. Commissions A commission not exceeding 5% of credit life and health insurance premiums, as set forth by rules adopted by the superintendent, may be paid to any creditor who is a licensed credit insurance agent. This section does not prohibit fees paid to a lender for handling or processing credit life or health insurance […]
24-A §2860. Authorized insurer, agent required
§2860. Authorized insurer, agent required All policies of consumer credit insurance may be delivered or issued for delivery in this State only by an insurer authorized to transact such insurance therein, and may be issued only through holders of licenses or authorizations issued by the superintendent. [PL 2001, c. 138, §13 (AMD).] SECTION HISTORY […]
24-A §2861. Premium not deemed interest; amount, collection
§2861. Premium not deemed interest; amount, collection 1. Except as provided in Title 9‑A, section 4‑104, the premium of cost of such insurance when issued through any creditor shall not be deemed interest, or charges, or consideration, or an amount in excess of permitted charges in connection with the loan or other credit transaction, and […]
24-A §2862. Claims
§2862. Claims 1. Claims reported. All claims shall be promptly reported to the insurer or its designated claim representative, and the insurer shall maintain adequate claim files. All claims shall be settled as soon as possible and in accordance with the terms of the insurance contract. [PL 1969, c. 132, §1 (NEW).] 2. Claims […]
24-A §2863. Existing insurance; choice of insurer
§2863. Existing insurance; choice of insurer When credit life insurance or credit health insurance is required as additional security for any indebtedness, the debtor shall, upon request to the creditor, have the option of furnishing the required amount of insurance through existing policies of insurance owned or controlled by the debtor or of procuring and […]
24-A §2864. Enforcement
§2864. Enforcement Whenever the superintendent finds that there has been a violation of this chapter or any regulations issued pursuant thereto, and after written notice thereof and hearing given to the insurer or other person authorized or licensed by the superintendent, such hearing to conform to the provisions of Title 5, chapter 375, subchapter 4, […]
24-A §2865. Rulemaking
§2865. Rulemaking The superintendent may adopt rules establishing specific requirements and procedures for consumer credit insurance policies, certificates of coverage and rates, consistent with the purposes of this chapter. These rules may specify additional types of consumer credit insurance that may be issued on an individual basis or, pursuant to chapter 40‑A, on a group […]