70C-6-202 - Maximum amount of insurance.
70C-6-202. Maximum amount of insurance.
(1) With respect to a closed-end credit agreement:
(a) in the case of consumer credit insurance providing life coverage, the amount ofinsurance may not initially exceed the debt and, if the debt is payable in installments, may not atany time exceed the greater of the scheduled or actual amount of the debt; and
(b) in the case of any other consumer credit insurance, the total amount of periodicbenefits payable may not exceed the total of scheduled unpaid installments of the debt, and theamount of any periodic benefit may not exceed the original amount of debt divided by the numberof periodic installments in which it is payable.
(2) With respect to an open-end credit agreement:
(a) in the case of consumer credit insurance providing life coverage, the amount ofinsurance may not exceed the unpaid balance in the account at any point in time; and
(b) in the case of any other consumer credit insurance, the total amount of periodicbenefits payable may not exceed the total of scheduled installments to pay the unpaid balance ofthe debt at any point in time.
Enacted by Chapter 159, 1985 General Session