02-031 C.M.R. ch. 220, § 4 - Definitions

A. "Amount Financed" as used in Title 24-A M.R.S.A., Sections2604-A(4) and 2855(1) (A), shall have the same meaning as that set forth in Title 9-A M.R.S.A., Section1-301(5).

B. "Open-end Credit" as used in Title 24-A M.R.S.A., Sections2855 and 2859, and in this Rule shall have the same meaning as that set forth in Title 9-A M.R.S.A., Section1-301(26).

C. "Closed-end credit" means any type of credit transaction other than open-end credit.

D. "Insurance charge" means an amount paid by a debtor to a creditor for credit insurance.

E. "Premium" means an amount paid by a creditor to an insurer for credit insurance.

F. "Truncated Coverage" means a credit insurance benefit with a term of insurance coverage that is shorter than the full term of the credit transaction or the remaining term at the time the insurance coverage is elected.

G. "Critical Period Disability Coverage" means credit disability insurance with a benefit equal to a specified number of monthly payments or the remaining payments on the loan, whichever is less.

H. "Noncontributory credit insurance" means credit insurance for which no insurance charge is made to the debtor and there is no differential in finance, interest, service or other similar charge made to debtors who are in like circumstances, except for their insured or noninsured status.

I. "Plan of Insurance" unless otherwise filed and approved means:

(1) credit life insurance on a flat rated basis other than revolving accounts (i.e. including joint and single life coverage, decreasing and non-decreasing insurance; outstanding balance and single premium);

(2) credit life insurance on a revolving account basis;

(3) credit life insurance on age-graded basis;

(4) credit accident and health insurance other than on revolving accounts combining outstanding balance and single premium but separately for each combination of waiting period and retroactive or non-retroactive;

(5) credit accident and health insurance on a revolving account basis separately for each combination of waiting period and retroactive or non-retroactive.

J. "Class of business" means any of the following:

(1) Credit unions;

(2) Commercial and savings banks;

(3) Finance companies;

(4) Motor vehicle dealers;

(5) Other sales finance;

(6) Production credit associations; bank agricultural loans;

(7) All others.

K. "Account" means the aggregate credit life insurance or credit accident and health insurance coverage for a single plan of insurance and for a single class of business written through a single creditor (or group of creditors if covered by a single group policy) by the insurer whether coverage is written on a group or individual policy basis.

L. "Credit disability insurance" means credit health insurance as defined by Title 24-A M.R.S.A., Section2853, Subsection 2.

M. "Total Disability" shall be defined no more restrictively than:

(1) In the case of an insured who was gainfully employed prior to disability, "the inability to engage in any gainful occupation for which he or she is reasonably suited by training, education, and experience," or

(2) In the case of an insured who was not gainfully employed prior to disability, "the inability to engage in activities of a gainfully employed a person of like age, training, education, and experience."

N. "Evidence of individual insurability" means any statement furnished by the debtor, as a condition of insurance becoming effective, that relates specifically to the health status or to the health or medical history of the debtor. This includes the use of health questions on the application.

Notes

02-031 C.M.R. ch. 220, § 4