§ 27-8-4-4 — Limitations on amount of insurance

A. Credit Life Insurance. The initial amount of
credit life insurance shall not exceed the total amount repayable under
the contract of indebtedness and, when 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. Notwithstanding the provisions of this paragraph,
insurance on agriculture credit transaction commitments, not exceeding
one (1) year in duration, may be written up to the amount of the loan
commitment on a non-decreasing or level term plan.
B. Credit Accident and Health Insurance. The aggregate amount of
periodic benefits payable by credit accident and health insurance in the
event of disability, as defined in the policy, shall not, in the case of an
indebtedness payable in installments, exceed the aggregate of the
periodic scheduled unpaid installments of the indebtedness or in the
case of an indebtedness payable in one sum, the unpaid amount of such
indebtedness; and the amount of each periodic benefit payment shall
not exceed the original indebtedness divided by the number of periodic
installments.
Formerly: Acts 1961, c.47, s.4.