20 CSR 600-2.400 - Credit Dismemberment Insurance
(1) When accident and health insurance is
sold, requisitioned, or accepted by any creditor in connection with any
extension of credit, this insurance may be in the form prescribed in section
385.070(2),
RSMo or in the form known as dismemberment
insurance; under no circumstances may both types of accident and health
insurance be sold in connection with the same extension of credit. If credit
dismemberment insurance is sold, requisitioned, or accepted in connection with
an extension of credit, this insurance is subject to the following
requirements, restrictions, and qualifications:
(A) Persons Insured. Credit dismemberment
insurance may be written on no more than one (1) person on any
contract;
(B) Written Evidence of
Coverage. The debtor must be provided with a copy of the dismemberment policy
or certificate of insurance within thirty (30) days of the extension of
credit;
(C) Availability. The
debtor must be able to purchase credit dismemberment insurance as a separate
and distinct coverage if the debtor so desires. Credit dismemberment insurance
which only may be purchased in conjunction with the purchase of some other form
of insurance is not permitted;
(D)
Cancellation. Credit dismemberment insurance is subject to the refunding
provisions as though it were credit life insurance issued pursuant to Chapter
385, RSMo and corresponding rules;
(E) Insurance Not to Exceed Contract Terms.
Credit dismemberment insurance may not exceed in amount the total indebtedness
nor exceed the underlying contract in duration; and
(F) Minimum Standards. Credit dismemberment
insurance must provide for a total payoff of an underlying indebtedness in the
event of loss of the sight of one (1) eye, loss of one (1) hand at or above the
wrist, and/or loss of one (1) foot at or above the ankle; no restrictions shall
be permitted, that is, full benefits must be payable on any dismemberment or
blindness which occurs during the coverage.
(2) Credit dismemberment insurance for which
no identifiable charge is made to the debtor is exempt from this
regulation.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.