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



(b)  Each individual policy or group
certificate of credit life insurance or credit disability insurance or any
combination thereof, shall, in addition to other requirements of law, set
forth:



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



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



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



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



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



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



(c)  Notwithstanding subsection (b), a
certificate issued under a group policy where the debtor is obligated to pay
the insurance premium or payment periodically with the debt payments on the
decreasing amount of the insurance or where the indebtedness is a revolving
loan or revolving charge account, the rate of insurance premium or payment per
unit 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 group
certificate of insurance shall be delivered to the insured debtor at the time
the indebtedness is incurred except as hereinafter provided.



(e)  If an individual policy or group
certificate of insurance is not delivered to the debtor at the time the
indebtedness is incurred, a copy of the application for the policy or a notice
of proposed insurance, signed by the debtor and setting forth the name and home
office address of the insurer, the name or names of the debtor, the premium or
amount of payment by the debtor, if any, separately for credit life insurance
and credit disability insurance, the amount, term, and a brief description of
the coverage provided, shall be delivered to the debtor at the time the indebtedness
is incurred.  The copy of the application for, or notice of proposed insurance,
shall also refer exclusively to insurance coverage and shall be separate and
apart from the loan, sale or other credit statement of account, instrument or
agreement, unless the information required by this section is prominently set
forth therein.  Upon acceptance of the insurance by the insurer and within
thirty days of the date upon which the indebtedness is incurred, the insurer
shall cause the individual policy or group certificate of insurance to be
delivered to the debtor.  The application or notice of proposed insurance shall
state that upon acceptance by the insurer, the insurance shall become effective
as provided in section 431:10B-106.



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