§ 4107. Provisions of policies and certificates; disclosure to debtors
(a) All credit life insurance and credit accident and health insurance sold 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 of insurance shall be delivered to the
debtor.
(b) Each individual policy or group certificate of credit life insurance or credit accident
and health insurance shall, in addition to other requirements of law, set forth the
name and home office address of the insurer, the name or names of the debtor, the
premium or amount of payment, if any, by the debtor separately for credit life insurance
and credit accident and health insurance, a description of the coverage including
the amount and term thereof, and any exceptions, limitations, or restrictions, and
shall state that the benefits shall be paid to the creditor to reduce or extinguish
the unpaid indebtedness and, wherever the amount of insurance may exceed the unpaid
indebtedness, that any such excess shall be payable to a beneficiary, other than the
creditor, named by the debtor or to his or her estate.
(c) Said individual policy or group certificate of insurance shall be delivered to the
insured debtor at the time the indebtedness is incurred except as hereinafter provided.
(d) If said individual policy or group certificate of insurance is not delivered to the
debtor at the time the indebtedness is incurred, a copy of the application for such
policy or a notice of proposed insurance, signed by the debtor and setting forth the
name and home office address of the insurer, the name or names of the debtor, the
premium or amount of payment by the debtor, if any, separately for credit life insurance
and credit accident and health insurance, the amount, term, and a brief description
of the coverage provided, shall be delivered to the debtor at the time such indebtedness
is incurred. The copy of the application for, or notice of, proposed insurance shall
refer exclusively to insurance coverage and shall be separate and apart from the loan,
sale, or other credit statement of account, instrument, or agreement, unless the information
required by this subsection is prominently set forth therein. Upon acceptance of
the insurance by the insurer and within 30 days of the date upon which the indebtedness
is incurred, the insurer shall cause the individual policy or group certificate of
insurance to be delivered to the debtor. Said application or notice of proposed insurance
shall state that upon acceptance by the insurer, the insurance shall become effective
as of the date the indebtedness is incurred. (Added 1959, No. 221, § 6.)