Utah Admin. Code R590-91-12 - Disclosure to Debtor
(1) When a premium
or identifiable charge is payable by a debtor for credit insurance coverage,
the following information must be disclosed to the debtor at the time the
debtor applies for the insurance:
(a) the
optional nature of the coverage;
(b) each premium or identifiable charge
separately listed by type of coverage;
(c) any eligibility requirement, including a
health restriction or at-work requirement; and
(d) any age restriction regarding eligibility
for insurance coverage at the time the indebtedness is incurred or stopped due
to the debtor reaching a specific age.
(2) The disclosures in Subsection (1) shall
be made to the principal debtor.
(3) The principal debtor shall receive a copy
of the disclosures.
(4) The
disclosures shall be retained in accordance with state and federal
law.
(5) The disclosure language
shall be prominently displayed near the signature space for the election to
obtain coverage.
(6) The
disclosures in Subsection (1) may be made in conjunction with:
(a) the Federal Truth-In-Lending
disclosure;
(b) a Notice of
Proposed Insurance;
(c) the
application; or
(d) the policy or
certificate.
(7) If,
during the term of the loan, the insurance is insufficient to pay off the
scheduled outstanding loan balance, the policy or certificate must clearly and
prominently disclose to the prospective insured that the insurance is
insufficient to pay off the outstanding loan balance.
(8) Each credit insurance policy and
certificate shall clearly describe the benefit amount and the term of
coverage.
(9) When the amount of
credit life insurance exceeds the unpaid indebtedness:
(a) the certificate or policy shall clearly
disclose the excess; and
(b) the
excess shall be paid to the debtor's named beneficiary, other than the
creditor, or to the debtor's estate.
(10) If any policy or certificate has a
preexisting condition exclusion, the exclusion shall be clearly and prominently
disclosed.
Notes
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