427.125. 1. Within thirty calendar days following the placement ofcollateral protection coverage, the creditor shall mail to the debtor atthe last known address of any such person, a notice entitled "Notice ofPlacement of Insurance" in a form substantially similar to the following:
"NOTICE OF PLACEMENT OF INSURANCE
Your credit agreement with us requires you to maintain adequateinsurance on your collateral until you pay off your credit agreement. Youhave not given us proof that you have adequate insurance on yourcollateral. Under the terms of your credit agreement, we have purchasedinsurance at your expense to protect our interests in your collateral.
The insurance we purchased will pay claims made by us as the creditor.The insurance we purchased may not pay any claims made by you or againstyou in connection with your collateral.
You are responsible for the costs of this insurance, including theinsurance premium, interest and any other charges we may impose inconnection with the purchase of this insurance. The costs of thisinsurance may be more than insurance you can buy on your own.
You still may obtain insurance of your own choosing on the collateral.If you provide us with proof that you have obtained adequate insurance onyour collateral, we will cancel the insurance that we purchased and refundor credit any unearned premiums to you. If, within thirty days after thedate this notice was sent to you, you provide us with proof that you hadadequate insurance on your collateral as of the date we purchased or placedinsurance on this debt and that you continue to have the insurance that youpurchased yourself, we will cancel the insurance that we purchased withoutcharging you any costs, interest, or other charges in connection with theinsurance that we purchased."
2. Provided the creditor otherwise complies with subsection 1 of thissection, a creditor may extend a grace period for sixty days or more fromthe date the debtor defaults on providing proof of insurance in which casecollateral protection insurance placed at the expiration of the graceperiod may include a premium charge for such coverage retroactive to thedate the debtor defaulted on the obligation to provide proof of insurance.If such a premium charge is included, the creditor shall amend the noticerequired by subsection 1 of this section to reflect that the creditor willcancel the insurance with no cost to the debtor only if the debtor providesproof of insurance that was effective as of the first day of the graceperiod.
3. The terms for repayment of the costs of the collateral protectioncoverage, which shall include interest and any other charges imposed by thecreditor in connection with the placement of the collateral protectioncoverage, shall include one or more of the following:
(1) Full payment within thirty days after the date of the notice ofplacement of insurance;
(2) A final balloon payment within thirty days after the lastscheduled payment required by the credit agreement; or
(3) Full amortization over the term of the credit transaction, theterm of the collateral protection insurance policy, or the term for whichamortization is used by the creditor.
427.125. 1. Within thirty calendar days following the placement ofcollateral protection coverage, the creditor shall mail to the debtor atthe last known address of any such person, a notice entitled "Notice ofPlacement of Insurance" in a form substantially similar to the following:
"NOTICE OF PLACEMENT OF INSURANCE
Your credit agreement with us requires you to maintain adequateinsurance on your collateral until you pay off your credit agreement. Youhave not given us proof that you have adequate insurance on yourcollateral. Under the terms of your credit agreement, we have purchasedinsurance at your expense to protect our interests in your collateral.
The insurance we purchased will pay claims made by us as the creditor.The insurance we purchased may not pay any claims made by you or againstyou in connection with your collateral.
You are responsible for the costs of this insurance, including theinsurance premium, interest and any other charges we may impose inconnection with the purchase of this insurance. The costs of thisinsurance may be more than insurance you can buy on your own.
You still may obtain insurance of your own choosing on the collateral.If you provide us with proof that you have obtained adequate insurance onyour collateral, we will cancel the insurance that we purchased and refundor credit any unearned premiums to you. If, within thirty days after thedate this notice was sent to you, you provide us with proof that you hadadequate insurance on your collateral as of the date we purchased or placedinsurance on this debt and that you continue to have the insurance that youpurchased yourself, we will cancel the insurance that we purchased withoutcharging you any costs, interest, or other charges in connection with theinsurance that we purchased."
2. Provided the creditor otherwise complies with subsection 1 of thissection, a creditor may extend a grace period for sixty days or more fromthe date the debtor defaults on providing proof of insurance in which casecollateral protection insurance placed at the expiration of the graceperiod may include a premium charge for such coverage retroactive to thedate the debtor defaulted on the obligation to provide proof of insurance.If such a premium charge is included, the creditor shall amend the noticerequired by subsection 1 of this section to reflect that the creditor willcancel the insurance with no cost to the debtor only if the debtor providesproof of insurance that was effective as of the first day of the graceperiod.
3. The terms for repayment of the costs of the collateral protectioncoverage, which shall include interest and any other charges imposed by thecreditor in connection with the placement of the collateral protectioncoverage, shall include one or more of the following:
(1) Full payment within thirty days after the date of the notice ofplacement of insurance;
(2) A final balloon payment within thirty days after the lastscheduled payment required by the credit agreement; or
(3) Full amortization over the term of the credit transaction, theterm of the collateral protection insurance policy, or the term for whichamortization is used by the creditor.
427.125. 1. Within thirty calendar days following the placement ofcollateral protection coverage, the creditor shall mail to the debtor atthe last known address of any such person, a notice entitled "Notice ofPlacement of Insurance" in a form substantially similar to the following:
"NOTICE OF PLACEMENT OF INSURANCE
Your credit agreement with us requires you to maintain adequateinsurance on your collateral until you pay off your credit agreement. Youhave not given us proof that you have adequate insurance on yourcollateral. Under the terms of your credit agreement, we have purchasedinsurance at your expense to protect our interests in your collateral.
The insurance we purchased will pay claims made by us as the creditor.The insurance we purchased may not pay any claims made by you or againstyou in connection with your collateral.
You are responsible for the costs of this insurance, including theinsurance premium, interest and any other charges we may impose inconnection with the purchase of this insurance. The costs of thisinsurance may be more than insurance you can buy on your own.
You still may obtain insurance of your own choosing on the collateral.If you provide us with proof that you have obtained adequate insurance onyour collateral, we will cancel the insurance that we purchased and refundor credit any unearned premiums to you. If, within thirty days after thedate this notice was sent to you, you provide us with proof that you hadadequate insurance on your collateral as of the date we purchased or placedinsurance on this debt and that you continue to have the insurance that youpurchased yourself, we will cancel the insurance that we purchased withoutcharging you any costs, interest, or other charges in connection with theinsurance that we purchased."
2. Provided the creditor otherwise complies with subsection 1 of thissection, a creditor may extend a grace period for sixty days or more fromthe date the debtor defaults on providing proof of insurance in which casecollateral protection insurance placed at the expiration of the graceperiod may include a premium charge for such coverage retroactive to thedate the debtor defaulted on the obligation to provide proof of insurance.If such a premium charge is included, the creditor shall amend the noticerequired by subsection 1 of this section to reflect that the creditor willcancel the insurance with no cost to the debtor only if the debtor providesproof of insurance that was effective as of the first day of the graceperiod.
3. The terms for repayment of the costs of the collateral protectioncoverage, which shall include interest and any other charges imposed by thecreditor in connection with the placement of the collateral protectioncoverage, shall include one or more of the following:
(1) Full payment within thirty days after the date of the notice ofplacement of insurance;
(2) A final balloon payment within thirty days after the lastscheduled payment required by the credit agreement; or
(3) Full amortization over the term of the credit transaction, theterm of the collateral protection insurance policy, or the term for whichamortization is used by the creditor.
