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

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

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

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