§ 24-4.5-4-202 — Amount of insurance

(1) Except as provided in subsection (2):
(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 instalments, 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 instalments of the debt, and the amount of any
periodic benefit may not exceed the original amount of debt
divided by the number of periodic instalments in which it is
payable.
(2) If consumer credit insurance is provided in connection with a
revolving charge account or revolving loan 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.
Formerly: Acts 1971, P.L.366, SEC.5. As amended by
P.L.247-1983, SEC.20.