16a-4-202.(UCCC) Amount of insurance.
(1) Except as provided in subsection (2),
(a) in the case of consumer credit insurance providing life coverage,
the amount of insurance may not initially exceed the debt and, if the debt
is payable in installments, may not at any time exceed the greater of the
scheduled or actual amount of the debt; or
(b) in the case of any other consumer credit insurance, the total amount
of periodic benefits payable may not exceed the total of scheduled unpaid
installments of the debt, and the amount of any periodic benefit may not
exceed the original amount of debt divided by the number of periodic
installments in which it is payable.
(2) If consumer credit insurance is provided in connection with an open
end credit account, the amounts payable as insurance benefits may be
reasonably commensurate with the amount of debt as it exists from time to
time. If consumer credit insurance is provided in connection with a
commitment to grant credit in the future, the amounts payable as insurance
benefits may be reasonably commensurate with the total from time to time of
the amount of debt and the amount of the commitment.
History: L. 1973, ch. 85, § 74;
L. 1988, ch. 85, § 9; July 1.
16a-4-202.(UCCC) Amount of insurance.
(1) Except as provided in subsection (2),
(a) in the case of consumer credit insurance providing life coverage,
the amount of insurance may not initially exceed the debt and, if the debt
is payable in installments, may not at any time exceed the greater of the
scheduled or actual amount of the debt; or
(b) in the case of any other consumer credit insurance, the total amount
of periodic benefits payable may not exceed the total of scheduled unpaid
installments of the debt, and the amount of any periodic benefit may not
exceed the original amount of debt divided by the number of periodic
installments in which it is payable.
(2) If consumer credit insurance is provided in connection with an open
end credit account, the amounts payable as insurance benefits may be
reasonably commensurate with the amount of debt as it exists from time to
time. If consumer credit insurance is provided in connection with a
commitment to grant credit in the future, the amounts payable as insurance
benefits may be reasonably commensurate with the total from time to time of
the amount of debt and the amount of the commitment.
History: L. 1973, ch. 85, § 74;
L. 1988, ch. 85, § 9; July 1.
16a-4-202.(UCCC) Amount of insurance.
(1) Except as provided in subsection (2),
(a) in the case of consumer credit insurance providing life coverage,
the amount of insurance may not initially exceed the debt and, if the debt
is payable in installments, may not at any time exceed the greater of the
scheduled or actual amount of the debt; or
(b) in the case of any other consumer credit insurance, the total amount
of periodic benefits payable may not exceed the total of scheduled unpaid
installments of the debt, and the amount of any periodic benefit may not
exceed the original amount of debt divided by the number of periodic
installments in which it is payable.
(2) If consumer credit insurance is provided in connection with an open
end credit account, the amounts payable as insurance benefits may be
reasonably commensurate with the amount of debt as it exists from time to
time. If consumer credit insurance is provided in connection with a
commitment to grant credit in the future, the amounts payable as insurance
benefits may be reasonably commensurate with the total from time to time of
the amount of debt and the amount of the commitment.
History: L. 1973, ch. 85, § 74;
L. 1988, ch. 85, § 9; July 1.