Sec. 38a-650. (Formerly 38-254). Policy or certificate requirements.
Sec. 38a-650. (Formerly 38-254). Policy or certificate requirements. (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 estate.
(c) Such 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 such 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
signed by the debtor or a notice of proposed insurance, setting forth the name or names
of the debtor, the premium rate 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 fifteen days of the date upon which the
indebtedness is incurred, the insurer shall deliver the individual policy or group certificate of insurance to the debtor. Such 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.
(1959, P.A. 576, S. 6.)
History: Sec. 38-254 transferred to Sec. 38a-650 in 1991.