A. Notwithstanding the terms of § 38.2-3720, if the credit transactionprovides for a variable interest rate and the insurance premiums arecalculated and charged on a single premium basis, the initial amount ofinsurance coverage shall not exceed the scheduled amounts of unpaidindebtedness based upon the initial contract interest rate; and the deathbenefit shall be equal to the scheduled amount of insurance at the date ofdeath or the amount required to liquidate the indebtedness in accordance withthe terms of the contract of indebtedness, whichever is greater. If theactual interest rate charged at any time exceeds the original contractinterest rate, the term of the insurance shall continue without additionalcharge for a period not to exceed three months. No additional premiums shallbe charged for any additional coverage provided beyond that included in thesingle premium charge.
B. Each individual policy or group certificate of credit insurance issued inconnection with credit transactions involving variable interest rates shallinclude a disclosure (i) that the death benefit shall in no case be less thanthe insured scheduled amount of coverage or the amount required to liquidatethe insured indebtedness in accordance with the terms of the contract ofindebtedness, whichever is greater; and (ii) that the term of insurance shallcontinue for a period not to exceed three months if the actual interest ratecharge at any time exceeds the original contract interest rate.
C. Each individual policy or group certificate of credit insurance issued inconnection with credit transactions involving variable interest rates shallprovide that in the event of termination of the insurance prior to theoriginal scheduled maturity date of the indebtedness, a refund of any amountpaid by the debtor for such insurance shall be made in accordance with §38.2-3729. Such refund shall be based on the terms of the original loan andthe actual elapsed time.
For a loan with a term of more than sixty-one months, computation of suchrefund using the actuarial method shall be deemed to comply with therequirements hereof. For a loan with a term of sixty-one months or less,computation of such refund using the Rule of 78 shall be deemed to complywith the requirement hereof.
(1984, c. 664, § 38.1-482.4:2; 1985, c. 234, § 38.2-3705; 1986, c. 562; 1992,c. 586.)
A. Notwithstanding the terms of § 38.2-3720, if the credit transactionprovides for a variable interest rate and the insurance premiums arecalculated and charged on a single premium basis, the initial amount ofinsurance coverage shall not exceed the scheduled amounts of unpaidindebtedness based upon the initial contract interest rate; and the deathbenefit shall be equal to the scheduled amount of insurance at the date ofdeath or the amount required to liquidate the indebtedness in accordance withthe terms of the contract of indebtedness, whichever is greater. If theactual interest rate charged at any time exceeds the original contractinterest rate, the term of the insurance shall continue without additionalcharge for a period not to exceed three months. No additional premiums shallbe charged for any additional coverage provided beyond that included in thesingle premium charge.
B. Each individual policy or group certificate of credit insurance issued inconnection with credit transactions involving variable interest rates shallinclude a disclosure (i) that the death benefit shall in no case be less thanthe insured scheduled amount of coverage or the amount required to liquidatethe insured indebtedness in accordance with the terms of the contract ofindebtedness, whichever is greater; and (ii) that the term of insurance shallcontinue for a period not to exceed three months if the actual interest ratecharge at any time exceeds the original contract interest rate.
C. Each individual policy or group certificate of credit insurance issued inconnection with credit transactions involving variable interest rates shallprovide that in the event of termination of the insurance prior to theoriginal scheduled maturity date of the indebtedness, a refund of any amountpaid by the debtor for such insurance shall be made in accordance with §38.2-3729. Such refund shall be based on the terms of the original loan andthe actual elapsed time.
For a loan with a term of more than sixty-one months, computation of suchrefund using the actuarial method shall be deemed to comply with therequirements hereof. For a loan with a term of sixty-one months or less,computation of such refund using the Rule of 78 shall be deemed to complywith the requirement hereof.
(1984, c. 664, § 38.1-482.4:2; 1985, c. 234, § 38.2-3705; 1986, c. 562; 1992,c. 586.)
A. Notwithstanding the terms of § 38.2-3720, if the credit transactionprovides for a variable interest rate and the insurance premiums arecalculated and charged on a single premium basis, the initial amount ofinsurance coverage shall not exceed the scheduled amounts of unpaidindebtedness based upon the initial contract interest rate; and the deathbenefit shall be equal to the scheduled amount of insurance at the date ofdeath or the amount required to liquidate the indebtedness in accordance withthe terms of the contract of indebtedness, whichever is greater. If theactual interest rate charged at any time exceeds the original contractinterest rate, the term of the insurance shall continue without additionalcharge for a period not to exceed three months. No additional premiums shallbe charged for any additional coverage provided beyond that included in thesingle premium charge.
B. Each individual policy or group certificate of credit insurance issued inconnection with credit transactions involving variable interest rates shallinclude a disclosure (i) that the death benefit shall in no case be less thanthe insured scheduled amount of coverage or the amount required to liquidatethe insured indebtedness in accordance with the terms of the contract ofindebtedness, whichever is greater; and (ii) that the term of insurance shallcontinue for a period not to exceed three months if the actual interest ratecharge at any time exceeds the original contract interest rate.
C. Each individual policy or group certificate of credit insurance issued inconnection with credit transactions involving variable interest rates shallprovide that in the event of termination of the insurance prior to theoriginal scheduled maturity date of the indebtedness, a refund of any amountpaid by the debtor for such insurance shall be made in accordance with §38.2-3729. Such refund shall be based on the terms of the original loan andthe actual elapsed time.
For a loan with a term of more than sixty-one months, computation of suchrefund using the actuarial method shall be deemed to comply with therequirements hereof. For a loan with a term of sixty-one months or less,computation of such refund using the Rule of 78 shall be deemed to complywith the requirement hereof.
(1984, c. 664, § 38.1-482.4:2; 1985, c. 234, § 38.2-3705; 1986, c. 562; 1992,c. 586.)
