20-1605. Maximum amount of credit life
insurance
A. The initial amount of credit life insurance shall not exceed the gross debt.
B. If a debt is repayable in substantially equal installments, the amount of
insurance shall at no time exceed the scheduled or actual amount of the gross debt,
whichever is greater.
C. Notwithstanding subsections A and B, credit life insurance in connection with a
loan not exceeding one year in duration, or pursuant to a bank or financial institution
loan checking account or revolving line of credit plan, may be issued or made effective
on a nondecreasing or level term plan in an amount not in excess of the loan. Credit life
insurance on an educational transaction commitment may be issued or made effective in an
amount which includes that portion of the commitment not yet advanced by the creditor.
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