§ 27-30-5 - Term of credit life insurance. [Effective until February 11, 2010.].
SECTION 27-30-5
§ 27-30-5 Term of credit life insurance.[Effective until February 11, 2010.]. – The term of any credit life insurance shall, subject to acceptance by theinsurer, commence on the date when the debtor becomes obligated to thecreditor, except that, where a group policy provides coverage with respect toexisting obligations, the insurance on a debtor with respect to theindebtedness shall commence on the effective date of the policy. The term ofthe insurance shall not extend more than fifteen (15) days beyond the scheduledmaturity date of the indebtedness except when the term of the insurance isextended with the consent of the debtor or when the term is extended withoutadditional cost to the debtor. If the indebtedness is discharged due to a newloan, renewal, or refinancing prior to the scheduled maturity date, theinsurance in force with respect to the indebtedness shall be terminated beforeany new insurance may be issued in connection with the new loan or renewed orrefinanced indebtedness. In all cases of termination prior to scheduledmaturity, a refund shall be paid or credited as provided in § 27-30-8.