§ 27-8-4-5 — Term of insurance

The term of any credit life insurance or credit
accident and health 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. This rule shall apply when no evidence of insurability is
required and, as well, when such evidence is required and is furnished
within the period of thirty (30) days after the date when the debtor
becomes obligated to the creditor; but should such evidence of
insurability be furnished after such thirty (30) day period, 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 fifteen (15) days beyond the scheduled maturity date of the
indebtedness except when extended without additional cost to the
debtor. 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 may be 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 8 of this chapter.
Formerly: Acts 1961, c.47, s.5. As amended by P.L.252-1985,
SEC.297.