31A-22-804 - Limitations on amounts of insurance. - Utah Statutes

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31A-22-804. Limitations on amounts of insurance.
(1) Except as provided under Subsection (2), the initial amount of credit life insurance onthe life of any one debtor may not exceed the total amount repayable under the contract ofindebtedness. Where an indebtedness is repayable in substantially equal periodic installments, theamount of insurance may not exceed the scheduled or actual amount of unpaid indebtedness,whichever is greater.
(2) Subsection (1) does not apply to:
(a) insurance on agricultural credit transaction commitments not exceeding thecommitment period, which may be written for the amount of the commitment on a nondecreasingor level term plan;
(b) insurance on educational credit transaction commitments, which may be written toinclude the portion of the commitment that has not been advanced by the creditor;
(c) insurance on preauthorized lines of credit not exceeding the commitment period whichmay be written for the preauthorized amount on a nondecreasing or level term plan, whethersecured or unsecured; and
(d) insurance on any other class of lawful credit transaction or commitment, which in thecommissioner's opinion does not require the application of the restrictions under Subsection (1), inwhich case the commissioner may authorize by rule a class exception to Subsection (1).
(3) The total amount of indemnity payable by credit accident and health insurance in theevent of disability, as defined in the policy, may not exceed the aggregate of the periodicscheduled unpaid installments of the indebtedness. The amount of each periodic indemnitypayment may not exceed the total amount repayable under the contract of indebtedness divided bythe number of periodic installments.

Amended by Chapter 116, 2001 General Session

State Codes and Statutes

Statutes > Utah > Title-31a > Chapter-22 > 31a-22-804

31A-22-804. Limitations on amounts of insurance.
(1) Except as provided under Subsection (2), the initial amount of credit life insurance onthe life of any one debtor may not exceed the total amount repayable under the contract ofindebtedness. Where an indebtedness is repayable in substantially equal periodic installments, theamount of insurance may not exceed the scheduled or actual amount of unpaid indebtedness,whichever is greater.
(2) Subsection (1) does not apply to:
(a) insurance on agricultural credit transaction commitments not exceeding thecommitment period, which may be written for the amount of the commitment on a nondecreasingor level term plan;
(b) insurance on educational credit transaction commitments, which may be written toinclude the portion of the commitment that has not been advanced by the creditor;
(c) insurance on preauthorized lines of credit not exceeding the commitment period whichmay be written for the preauthorized amount on a nondecreasing or level term plan, whethersecured or unsecured; and
(d) insurance on any other class of lawful credit transaction or commitment, which in thecommissioner's opinion does not require the application of the restrictions under Subsection (1), inwhich case the commissioner may authorize by rule a class exception to Subsection (1).
(3) The total amount of indemnity payable by credit accident and health insurance in theevent of disability, as defined in the policy, may not exceed the aggregate of the periodicscheduled unpaid installments of the indebtedness. The amount of each periodic indemnitypayment may not exceed the total amount repayable under the contract of indebtedness divided bythe number of periodic installments.

Amended by Chapter 116, 2001 General Session

State Codes and Statutes

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State Codes and Statutes

Statutes > Utah > Title-31a > Chapter-22 > 31a-22-804

31A-22-804. Limitations on amounts of insurance.
(1) Except as provided under Subsection (2), the initial amount of credit life insurance onthe life of any one debtor may not exceed the total amount repayable under the contract ofindebtedness. Where an indebtedness is repayable in substantially equal periodic installments, theamount of insurance may not exceed the scheduled or actual amount of unpaid indebtedness,whichever is greater.
(2) Subsection (1) does not apply to:
(a) insurance on agricultural credit transaction commitments not exceeding thecommitment period, which may be written for the amount of the commitment on a nondecreasingor level term plan;
(b) insurance on educational credit transaction commitments, which may be written toinclude the portion of the commitment that has not been advanced by the creditor;
(c) insurance on preauthorized lines of credit not exceeding the commitment period whichmay be written for the preauthorized amount on a nondecreasing or level term plan, whethersecured or unsecured; and
(d) insurance on any other class of lawful credit transaction or commitment, which in thecommissioner's opinion does not require the application of the restrictions under Subsection (1), inwhich case the commissioner may authorize by rule a class exception to Subsection (1).
(3) The total amount of indemnity payable by credit accident and health insurance in theevent of disability, as defined in the policy, may not exceed the aggregate of the periodicscheduled unpaid installments of the indebtedness. The amount of each periodic indemnitypayment may not exceed the total amount repayable under the contract of indebtedness divided bythe number of periodic installments.

Amended by Chapter 116, 2001 General Session