Haw. Code R. § 16-6-8 - Voluntary prepayment of indebtedness
If a debtor prepays the indebtedness other than as a result of the debtor's death or through a lump sum disability payment:
(1) Any credit life insurance covering such
indebtedness shall be terminated and an appropriate refund of the credit life
insurance premium shall be paid to the debtor in accordance with section
16-6-13; provided insurance furnished by a prepaid individual policy may be
continued if the debtor so elects in a separate written instrument signed and
delivered to the insurer at the time of the prepayment;
(2) Any credit disability insurance covering
the indebtedness shall be terminated and an appropriate refund of the credit
disability insurance premium shall be paid to the debtor in accordance with
section 16-6-13, and if a claim under such coverage is in progress at the time
of prepayment, the claim shall continue as if there had been no prepayment;
provided insurance furnished by a prepaid individual policy may be continued if
the debtor so elects in a separate written instrument signed and delivered to
the insurer at the time of the prepayment.
Notes
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