§ 10-10-107 — Term of credit insurance

The term of any credit insurance shall,
subject to acceptance by the insurer, commence on the date when the debtor
becomes obligated to the creditor; except that, where a group policy provides
coverage with respect to existing obligations, the insurance on a debtor with
respect to such indebtedness shall commence on the effective date of the policy.
Where evidence of insurability is required and such evidence is furnished more than
thirty days after the date when the debtor becomes obligated to the creditor, the
term of the insurance may commence on the date on which the insurance company
determines the evidence to be satisfactory, and in such event there shall be an
appropriate refund or adjustment of any charge to the debtor for insurance. The
term of such insurance shall not extend more than thirty days beyond the
scheduled maturity date of the indebtedness except when extended without
additional cost to the debtor, unless the debtor has agreed in writing. If the
indebtedness is discharged due to renewal or refinancing prior to the scheduled
maturity date, the insurance in force shall be terminated before any new insurance
is issued in connection with the renewed or refinanced indebtedness. In all cases of
termination prior to scheduled maturity, a refund shall be paid or credited as
provided in section 10-10-110.

Legislative History

Source: L. 69: p. 537, � 7. C.R.S. 1963: � 72-28-7. L. 83: (1)(b) amended, p. 512, � 1, effective May 16. L. 92: Entire section amended, p. 1570, � 87, effective May 20.