385.040. Policy or group certificate, contents of, delivery required--policy or certificate not delivered, effect of.
Policy or group certificate, contents of, delivery required--policyor certificate not delivered, effect of.
385.040. 1. All credit life insurance and credit accidentand sickness insurance shall be evidenced by an individualpolicy, or in the case of group insurance by a certificate ofinsurance, which individual policy or group certificate ofinsurance shall be delivered to the debtor.
2. Each individual policy or group certificate of creditlife insurance, or credit accident and sickness insurance, orboth, shall, in addition to other requirements of law, set forththe name and home office address of the insurer, the name ornames of the debtor, the premium or amount of payment by thedebtor separately for credit life insurance and credit accidentand sickness insurance, a description of the coverage includingthe amount and term thereof, and any exceptions, limitations andrestrictions, and shall state that the benefits shall be paid tothe creditor to reduce or extinguish the unpaid indebtedness and,wherever the amount of insurance may exceed the unpaidindebtedness, that any excess shall be payable to a beneficiary,other than the creditor, named by the debtor or to his estate.
3. The individual policy or group certificate of insuranceshall be delivered to the insured debtor at the time theindebtedness is incurred except as hereinafter provided.
4. If the individual policy or group certificate ofinsurance is not delivered to the debtor at the time theindebtedness is incurred, a copy of the application for thepolicy or a notice of proposed insurance, signed by the debtorand setting forth the name and home office address of theinsurer, the name or names of the debtor, the premium or amountof payment by the debtor, if any, separately for credit lifeinsurance and credit accident and sickness insurance, the amount,term and a brief description of the coverage provided, shall bedelivered to the debtor at the time the indebtedness is incurred.The copy of the application for or notice of proposed insurance,shall also refer exclusively to insurance coverage, and shall beseparate and apart from the loan, sale or other credit statementof account, instrument or agreement, unless the informationrequired by this subsection is prominently set forth therein.Upon acceptance of the insurance by the insurer and within thirtydays of the date upon which the indebtedness is incurred, theinsurer shall cause the individual policy or group certificate ofinsurance to be delivered to the debtor. The application ornotice of proposed insurance shall state that, upon acceptance bythe insurer, the insurance shall become effective as provided insection 385.035.
(L. 1977 H.B. 610 § 7)