20-1607. Term of insurance
A. Subject to acceptance by the insurer, the term of any consumer credit insurance
shall commence on the date when the debtor becomes obligated to the creditor.
B. Notwithstanding subsection A of this section, the term of a policy that provides
coverage for an existing obligation shall commence on the effective date of the policy
and where evidence of insurability is required and the evidence is furnished more than
thirty days after the date when the debtor becomes obligated to the creditor, the term of
the insurance shall commence on the date on which the insurer determines the evidence to
be satisfactory and in such event, respecting collections from or charges to the debtor
for earlier coverage, there shall be an appropriate refund or adjustment.
C. Except where the creditor grants an extension of time for repayment of a debt,
the term of any consumer credit insurance shall not extend more than fifteen days beyond
the scheduled maturity date of the debt unless done without additional cost to the
debtor. If the debt is discharged due to renewal or refinancing prior to the scheduled
maturity date, the insurance in force shall be terminated before any new insurance may be
issued in connection with the renewed or refinanced debt. In each case of termination
prior to scheduled maturity, a refund shall be paid or credited as provided in section
20-1611.
|