20-1621.02. Amount; term; coverage; prohibited practices
A. For credit property insurance sold in conjunction with a closed-end transaction, an insurer shall not:
1. Issue credit property insurance coverage unless the amount financed exceeds one hundred dollars.
2. Issue credit property insurance in an amount that exceeds the amount of the underlying credit transaction unless otherwise required by the laws of this state.
3. Sell credit property insurance with a term that exceeds in duration the scheduled term of the underlying credit transaction.
B. At a minimum, credit property insurance coverage shall include the coverages in the standard fire policy prescribed in section 20-1503 with coverage attachment and extended coverage endorsement.
C. Credit property insurance shall cover the possibility of an actual and substantial risk of loss of or damage to the property related to the credit transaction.
D. An insurer may not require the bundling of any other consumer credit insurance coverage with the purchase of credit property insurance coverage. A debtor may choose to purchase credit property insurance coverage separate from any other consumer credit insurance coverage.
E. An insurer shall not use gross debt as an exposure rating base in determining credit property insurance premiums.
Copyright ©2024 LegalFix. All rights reserved. LegalFix is not a law firm, is not licensed to practice law, and does not provide legal advice, services, or representation. The information on this website is an overview of the legal insurance products you can purchase—or that may be provided by your employer as an employee benefit or by your credit union or other membership group as a membership benefit.
LegalFix provides its members with access to legal services through a network of provider law firms. LegalFix, its corporate entity, and its officers, directors, employees, agents, and contractors do not provide legal advice, services, or representation—directly or indirectly.
The articles and information on the site are not legal advice and should not be relied upon—they are for information purposes only. You should become a LegalFix member to get legal services from one of our provider law firms.
You should not disclose confidential or potentially incriminating information to LegalFix—you should only communicate such information to your provider law firm.
The benefits and legal services described in the LegalFix legal plans are not always available in all states or with all plans. See the legal plan Benefit Overview and the more comprehensive legal plan contract during checkout for coverage details in your state.
Use of this website, the purchase of legal insurance products, and access to the LegalFix network of provider law firms are subject to the LegalFix Terms of Service and Privacy Policy.
