§431:10B-105  Amount of credit life
insurance and credit disability insurance.  (a)  Credit life insurance.



(1)  The initial amount of credit life insurance shall
not exceed the total amount repayable under the contract of indebtedness and,
where an indebtedness is repayable in substantially equal installments, the
amount of insurance shall at no time exceed the scheduled or actual amount of
unpaid indebtedness, whichever is greater; except that if the sole purpose of
the loan is to provide future advances to the debtor to meet education or
education related expenses of the debtor, the debtor's spouse, children or
other dependents, the amount of insurance may equal, but may not exceed, the
total amount of the described expenses forecast at the time of entry into the
loan agreement with the creditor, less the amount of all repayments by the
debtor.  In the case of revolving loan or revolving charge accounts, the
insurance shall at no time exceed the unpaid indebtedness.



(2)  Notwithstanding the provisions of subsection
(a)(1), insurance on agricultural credit transaction commitments not exceeding
one year in duration may be written up to the amount of the loan commitment, on
a nondecreasing or level term plan.



(b)  Credit disability insurance.  The total
amount of periodic indemnity payable by credit disability insurance in the
event of disability, as defined in the policy, shall not exceed the aggregate
of the periodic scheduled unpaid installments of the indebtedness.  The amount
of each periodic indemnity payment shall not exceed the original indebtedness
divided by the number of periodic installments. [L 1987, c 347, pt of §2]