§ 5-4-202 — Amount of insurance

(1) Except as provided in subsection (2) of
this section:

(a) In the case of consumer credit insurance providing life coverage, the
amount of insurance may not initially exceed the debt and, if the debt is payable in
installments, may not at any time exceed the greater of the scheduled or actual
amount of the debt; or

(b) In the case of any other consumer credit insurance, the total amount of
periodic benefits payable may not exceed the total of scheduled unpaid
installments of the debt, and the amount of any periodic benefit may not exceed
the original amount of debt divided by the number of periodic installments in which
it is payable.

(2) If consumer credit insurance is provided in connection with a revolving
credit account, the amounts payable as insurance benefits may be reasonably
commensurate with the amount of debt as it exists from time to time. If consumer
credit insurance is provided in connection with a commitment to grant credit in the
future, the amounts payable as insurance benefits may be reasonably
commensurate with the total from time to time of the amount of debt and the
amount of the commitment.

Legislative History

Source: L. 2000: Entire article R&RE, p. 1231, � 1, effective July 1.