State Codes and Statutes

Statutes > Utah > Title-31a > Chapter-22 > 31a-22-806

31A-22-806. Provisions of policies and certificates.
(1) All credit life insurance and credit accident and health insurance shall be evidenced byan individual policy, or, in the case of group insurance, by a certificate of insurance delivered tothe debtor.
(2) Each of these types of policies or certificates shall, in addition to satisfying therequirements of Chapter 21, set forth:
(a) the name and home office address of the insurer;
(b) the identity, by name or otherwise, of the persons insured;
(c) the rate, premium, or amount of payment by the debtor, if any, given separately forcredit life insurance and credit accident and health insurance;
(d) a description of the amount, term, and coverage, including any exceptions,limitations, and restrictions;
(e) that the benefits shall be paid to the creditor to reduce or extinguish the unpaidindebtedness; and
(f) that whenever the amount of insurance exceeds the unpaid indebtedness, that excess ispayable to a beneficiary, other than the creditor, named by the debtor or to the debtor's estate.
(3) Except as provided in Subsection (4), the policy or certificate shall be delivered to thedebtor within 30 days after the date when the indebtedness is incurred.
(4) (a) If the policy or certificate is not delivered to the debtor within 30 days after thedate the indebtedness is incurred, a copy of the application for the policy or a notice of proposedinsurance shall be delivered to the debtor.
(b) The application or the notice shall be signed by the debtor and shall set forth:
(i) the name and home office address of the insurer;
(ii) the name of the debtor;
(iii) the premium or amount of payment by the debtor, if any, separately for credit lifeinsurance and credit accident and health insurance; and
(iv) the amount, term, and a brief description of the coverage provided.
(c) The copy of the application for or notice of proposed insurance, shall also referexclusively to insurance coverage, and shall be separate from the loan, sale, or other creditstatement of account or instrument, unless the information required by this Subsection (4)(c) isprominently set forth therein.
(d) Upon acceptance of the insurance by the insurer and within 60 days after the later ofthe date on which the indebtedness is incurred or the date on which the credit life or creditaccident and health policy was purchased, the insurer shall deliver the individual policy or groupcertificate of insurance to the debtor.
(e) The application or notice shall state that upon acceptance by the insurer, the insuranceis effective as provided in Section 31A-22-805.
(5) If the named insurer does not accept the risk, the debtor shall receive a policy orcertificate of insurance setting forth the name and home office address of the substituted insurerand the amount of the premium to be charged. If the premium is less than that set forth in thenotice of proposed insurance, an appropriate refund shall be made.
(6) If a creditor makes available to the debtors more than one plan of credit life or creditaccident and health insurance, all debtors must be informed of the plans applicable to the specifictype of loan transaction for which the debtor is applying.

Amended by Chapter 116, 2001 General Session