16a-4-201.   (UCCC) Term of insurance.(1) Consumer credit insurance provided by a creditor may be subject tothe furnishing of evidence of insurability satisfactory to the insurer.Whether or not such evidence is required, the term of the insurance shallcommence no later than when the consumer becomes obligated to the creditoror when the consumer applies for the insurance, whichever is later, exceptas follows:

      (a)   if any required evidence of insurability is not furnished until morethan thirty (30) days after the term would otherwise commence, the term maycommence on the date when the insurer determines the evidence to besatisfactory; or

      (b)   if the creditor provides insurance not previously provided coveringdebts previously created, the term may commence on the effective date ofthe policy.

      (2)   The originally scheduled term of the insurance shall extend at leastuntil the due date of the last scheduled payment of the debt except asfollows:

      (a)   if the insurance relates to an open end credit account, the termneed extend only until the payment of the debt under the account and may besooner terminated after at least thirty (30) days' notice to the consumer;or

      (b)   if the consumer is advised in writing that the insurance will bewritten for a specified shorter time, the term need extend only until theend of the specified time.

      (3)   The term of the insurance shall not extend more than fifteen (15)days after the originally scheduled due date of the last scheduled paymentof the debt unless it is extended without additional cost to the consumeror as an incident to a deferral, refinancing, or consolidation.

      History:   L. 1973, ch. 85, § 73; Jan. 1, 1974.