§431:10B-107  Provisions of policies andcertificates of insurance:  disclosure to debtors.  (a)  Credit lifeinsurance and credit disability insurance subject to this article shall beevidenced by an individual policy, or in the case of group insurance by acertificate of insurance, which individual policy or group certificate ofinsurance shall be delivered to the debtor.

(b)  Each individual policy or groupcertificate of credit life insurance or credit disability insurance or anycombination thereof, shall, in addition to other requirements of law, setforth:

(1)  The name and home office address of the insurer;

(2)  The name or names of the debtor, or in the caseof a certificate under a group policy, the identity by name or otherwise of thedebtor;

(3)  The premium or amount of payment, if any, by thedebtor, separately for credit life insurance and credit disability insurance;

(4)  A description of the coverage including theamount and term thereof;

(5)  Any exceptions, limitations, and restrictions;and

(6)  Shall state that the benefits shall be paid tothe creditor to reduce or extinguish the unpaid indebtedness and, wherever theamount of insurance may exceed the unpaid indebtedness, that any such excessshall be payable to a beneficiary, other than the creditor, named by the debtoror to the debtor's estate.

(c)  Notwithstanding subsection (b), acertificate issued under a group policy where the debtor is obligated to paythe insurance premium or payment periodically with the debt payments on thedecreasing amount of the insurance or where the indebtedness is a revolvingloan or revolving charge account, the rate of insurance premium or payment perunit of coverage may be set forth instead of the premium or amount of payment,if any, by the debtor.

(d)  Each such individual policy or groupcertificate of insurance shall be delivered to the insured debtor at the timethe indebtedness is incurred except as hereinafter provided.

(e)  If an individual policy or groupcertificate of insurance is not delivered to the debtor at the time theindebtedness is incurred, a copy of the application for the policy or a noticeof proposed insurance, signed by the debtor and setting forth the name and homeoffice address of the insurer, the name or names of the debtor, the premium oramount of payment by the debtor, if any, separately for credit life insuranceand credit disability insurance, the amount, term, and a brief description ofthe coverage provided, shall be delivered to the debtor at the time the indebtednessis incurred.  The copy of the application for, or notice of proposed insurance,shall also refer exclusively to insurance coverage and shall be separate andapart from the loan, sale or other credit statement of account, instrument oragreement, unless the information required by this section is prominently setforth therein.  Upon acceptance of the insurance by the insurer and withinthirty days of the date upon which the indebtedness is incurred, the insurershall cause the individual policy or group certificate of insurance to bedelivered to the debtor.  The application or notice of proposed insurance shallstate that upon acceptance by the insurer, the insurance shall become effectiveas provided in section 431:10B-106.

(f)  If the named insurer does not accept therisk, the debtor shall receive a policy or certificate of insurance settingforth the name and home office address of the substituted insurer and theamount of the premium to be charged, and if the amount of premium is less thanthat set forth in the notice of proposed insurance, an appropriate refund shallbe made. [L 1987, c 347, pt of §2]