§ 10-10-106 — Amount of credit insurance

(1) The initial amount of credit
insurance shall not exceed the total amount repayable under the contract of
indebtedness and, where an indebtedness is repayable in substantially equal
installments, the amount of insurance shall at no time exceed the scheduled or
actual amount of unpaid indebtedness, whichever is greater.

(2) Notwithstanding the provisions of subsection (1) of this section, insurance
on agricultural credit transaction commitments, not exceeding one year in duration,
may be written up to the amount of the loan commitment on a nondecreasing or
level term plan.

(3) Notwithstanding any other provision of this section, insurance on
educational credit transaction commitments may be written for the amount of the
portion of such commitment that has not been advanced by the creditor.

(4) The total amount of periodic indemnity payable by credit accident and
health insurance in the event of disability, as defined in the policy, shall not exceed
the aggregate of the periodic scheduled unpaid installments of the indebtedness;
and the amount of each periodic indemnity payment shall not exceed the original
indebtedness divided by the number of periodic installments.

Legislative History

Source: L. 69: p. 537, � 6. C.R.S. 1963: � 72-28-6. L. 92: (1) amended, p. 1570, � 86, effective May 20.