A. Before a debtor elects to purchase credit property insurance, the following information shall be disclosed to the debtor in writing:
1. Purchase of credit property insurance through the creditor is optional and not a condition of obtaining credit approval.
2. If more than one kind of credit insurance is being made available to the debtor, the debtor can purchase credit property insurance separately.
3. If the debtor has other insurance that covers the property, the debtor may not want or need credit property insurance.
4. Within the first thirty days of insurance coverage, the debtor may cancel the coverage and receive a refund or credit of all premium the debtor has paid.
5. The premium or premium rate for each type of coverage.
6. If the premium or insurance charge is financed, that it will be subject to finance charges at the rate applicable to the credit transaction.
B. A person may combine the disclosures required by subsection A with other disclosures required by the laws of this state or by federal law.
C. The disclosures required by subsection A shall be provided in the following manner:
1. For credit property insurance offered contemporaneously with the extension of credit or offered through direct mail advertisements, the disclosures shall be made in writing and presented to the consumer in a clear and conspicuous manner.
2. For credit property insurance offered after the extension of credit by other than direct mail advertisements, the disclosures required by subsection A, paragraphs 1, 5 and 6 may be provided orally or electronically if both of the following occur:
(a) The following oral disclosure is also made to a debtor who elects to purchase any consumer credit insurance:
You will be receiving important written information about the insurance you have chosen to purchase and your rights. We recommend that you read and carefully review this information as soon as you receive it.
(b) Written disclosure of all information required by subsection A of this section is provided to the debtor no later than the earlier of:
(i) Ten days after the debtor elects coverage.
(ii) The date any other written material is provided to the debtor.
D. An offer to extend credit property insurance coverage for an open-end consumer transaction shall include, at the time of the invitation to contract, the written disclosure prescribed below in at least ten point type. If the solicitation is made by telephone, the written disclosure shall be mailed within ten days of enrollment.
This coverage may duplicate existing coverage if you have a residential property insurance policy. It applies to any item of covered property on which you owe a debt. This coverage is primary, so it is the first source to be used in the event of a loss on property it covers. You may cancel this coverage at any time by calling the insurer at the telephone number provided to you or by writing to the insurer. We are charging you a premium that may be based on things for which a claim cannot be made, such as services, meals or other consumables, entertainment, finance or service fees, loan interest, delivery charges or other insurance premiums.
E. All credit property insurance shall be evidenced by an individual policy or a certificate of insurance that shall be delivered to the debtor.
F. In addition to other requirements of law, the individual policy or certificate of insurance shall contain all of the following information:
1. The name and home office address of the insurer.
2. The name of each debtor, or, in the case of a certificate of insurance, the identity by name or otherwise of each debtor.
3. The premium or amount of payment by the debtor, except that, for open-end loans, the premium rate and balance to which the rate applies shall be specified.
4. A full description of the coverage or coverages, including the amount and term and any exceptions, limitations and exclusions.
5. A statement that the benefits shall be paid to the creditor to reduce or extinguish the unpaid debt or, for credit personal property insurance coverage, to repair or replace the property and, whenever the amount of loss payment exceeds the unpaid debt, that any excess payment is payable to the debtor.
6. If the scheduled term of the insurance is less than the scheduled term of the credit transaction, a statement to that effect on the face of the individual policy or certificate of insurance in not less than twelve point bold face type.
G. Policies issued to cover open-end consumer transactions shall provide that the policyholder or certificate holder will be furnished the following disclosure notice with the account statement at least annually in no smaller than ten point type:
You are paying credit property insurance premiums based on the outstanding balance of this account. You may cancel this coverage at any time by calling the insurer at the telephone number the insurer has provided to you or by writing to the insurer. Your premium may be based on things for which a claim cannot be made, such as services, meals or other consumables, entertainment, finance or service fees, loan interest, delivery charges or other insurance premiums.
H. The policy shall be delivered to the debtor when the insurer accepts the insurance, except that a policy issued in conjunction with an open-end credit agreement or requested after the date the indebtedness is incurred may be delivered within thirty days of the date the debtor requests insurance.