Credit Life insurance

Group credit insurance must expect to gain how many new debtors a year or at least how many entrants during the first policy year?

100

What if a group policy covers existing obligations?

begins on effective date of policy

who is the policy holder for group credit insurance?

creditor

If less than 75% of the entrants become insured the policy must give the insurer the right to require what?

evidence of insurability

All credit life insurance must be evidenced by what?

individual policy or a group certificate of insurance

Can an individual who lends money or extends credit require that a debtor obtain insurance from a particular insurer?

no

If insurance is terminated before scheduled date of indebtedness how is a refund dealt with?

paid or credited to entitled person

Credit insurance requirements apply to each policy, certificate, notice etc. in connection with loans or other credit transactions for who?

person, family or household purposes

Insurance is made payable to who?

policy holder

What does each payment to the group credit insurance policy holder do?

reduce unpaid indebtedness of debtor

All credit insurers must file a what with the commissioner along with the forms and policies?

schedule of premium rates

Credit life insurance covers the life of who?

the debtor

When must the policy or certificate be delivered?

time indebtedness is incurred

Credit life does not apply to insurance or disability insurance delivered or isseued for delivery in connection with what things?

-loan or other credit transaction of more than 15 years -credit transaction secured by first mortgage or deed of trust -finance purchase of real property or construction -refinance prior credit transaction -credit transaction not part of agreement

All individual credit policies or group certificates must include what

-name/address of insurer -identity of each debtor -rate of premium -description of coverage -statement that benefits will be paid -statement that if amount of insurance exceeds unpaid indebtedness excess benefit goes to estate or beneficiary named by debtor

What forms may an insurer issue credit life insurance?

1. individual life or disability insurance issued to debtors on term plan -Group life insurance policies issued to creditors providing insurance upon lives of debtors on term plan -Group disability insurance policies issued to creditors on term plan insuring debtors

All forms and policies must be filed with who before delivery for credit insurance?

Commissioner

What can the amount of credit insurance not exceed?

Total indebtedness

What does credit life and Credit Disability Insurance do?

covers debtors of a creditor in connection with a specific loan or other credit transaction

If credit insurance is required as additional security for any indebtedness the debor has the option to do what?

furnish required insurance through existing polices or through authorized insurer in MT

Credit disablility insurance does what?

provides pmts on loans that become due while debtor is disabled

When does the term on credit life insurance begin?

when debtor becomes obligated to creditor

who pays the premiums for group credit insurance?

creditor from funds or charges from insured debtors

Debtors eligible for group credit insurance must all be what?

debtors of the creditor