§ 24-4.5-4-201 — Term of insurance

Term of Insurance — (1) Consumer
credit insurance provided by a creditor may be subject to the furnishing
of evidence of insurability satisfactory to the insurer. Whether or not
such evidence is required, the term of the insurance shall commence no
later than when the debtor becomes obligated to the creditor or when
the debtor applies for the insurance, whichever is later, except as
follows:
(a) if any required evidence of insurability is not furnished until
more than thirty (30) days after the term would otherwise commence,
the term may commence on the date when the insurer determines the
evidence to be satisfactory; or
(b) if the creditor provides insurance not previously provided
covering debts previously created, the term may commence on the
effective date of the policy.
(2) The originally scheduled term of the insurance shall extend at
least until the due date of the last scheduled payment of the debt except
as follows:
(a) if the insurance relates to a revolving charge account or
revolving loan account, the term need extend only until the payment of
the debt under the account and may be sooner terminated after at least
thirty (30) days' notice to the debtor; or
(b) if the debtor is advised in writing that the insurance will be
written for a specified shorter time, the term need extend only until the
end of the specified time.
(3) The term of the insurance shall not extend more than fifteen (15)
days after the originally scheduled due date of the last scheduled
payment of the debt unless it is extended without additional cost to the
debtor or as an incident to a deferral; refinancing, or consolidation.
Formerly: Acts 1971, P.L.366, SEC.5.