Mich. Admin. Code R. 550.208 - Involuntary prepayment of indebtedness

Current through Vol. 22-05, April 1, 2022

Rule 8. If an indebtedness is prepaid by the proceeds of a credit life insurance policy covering the debtor or by a lump sum payment of a disability claim under a credit insurance policy covering the debtor, then it shall be the responsibility of the insurer to see that the following are paid to the insured debtor, if living, to the beneficiary, other than the creditor, named by the debtor, or to the debtor's estate:

(a) In the case of prepayment by the proceeds of a credit life insurance policy, or by the proceeds of a lump sum total and permanent disability benefit under credit life coverage, an appropriate refund of the credit accident and health insurance premium in accordance with R 550.113.
(b) In the case of prepayment by a lump sum disability claim, an appropriate refund of the credit life insurance premium in accordance with R 550.113.
(c) In either case, the amount of the benefits in excess of the amount required to repay the indebtedness after crediting any unearned interest or finance charges.

Notes

Mich. Admin. Code R. 550.208
1987 AACS

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