§ 27-8-4-6 — Policy or certificate; delivery; rejection of risk; to another insurer; credit for lower premium

(a) All credit life insurance and credit accident
and health insurance shall be evidenced by an individual policy, or in
the case of group insurance by a certificate of insurance, which
individual policy of group certificate of insurance shall be delivered to
the debtor.
(b) Each individual policy or group certificate of credit life
insurance or credit accident and health insurance shall, in addition to
other requirements of law, set forth:
(1) the name and home office address of the insurer;
(2) the name or names of the debtor or in the case of a certificate
under a group policy, the identity by name or otherwise of the
debtor;
(3) the premium or amount of payment, if any, by the debtor
separately for credit life insurance and credit accident and health
insurance;
(4) a description of the coverage, including the amount and term
of the coverage;
(5) any exceptions, limitations, and restrictions; and
(6) that the benefits shall be paid to the creditor to reduce or
extinguish the unpaid indebtedness and, wherever the amount of
insurance may exceed the unpaid indebtedness, that any such
excess shall be payable to a beneficiary, other than the creditor,
named by the debtor or to the debtor's estate.
(c) Said individual policy or group certificate of insurance shall be
delivered to the insured debtor at the time the indebtedness is incurred
except as provided in this chapter.
(d) If said individual policy or group certificate of insurance is not
delivered to the debtor at the time the indebtedness is incurred, a copy
of the application for such policy or a notice of proposed insurance,
signed by the debtor and setting forth:
(1) the name and home office address of the insurer;
(2) the name or names of the debtor;
(3) the premium or amount of payment by the debtor, if any,
separately for credit life insurance and credit accident and health
insurance; and
(4) the amount, term, and a brief description of the coverage
provided;
shall be delivered to the debtor at the time such indebtedness is
incurred. The copy of the application for, or notice of proposed
insurance, shall also refer exclusively to insurance coverage, and shall
be separate and apart from the loan, sale, or other credit statement of
account, instrument, or agreement, unless the information required by
this subsection is prominently set forth in the loan, sale, or other credit
statement of account, instrument, or agreement. Upon acceptance of the
insurance by the insurer and within thirty (30) days of the date upon
which the indebtedness is incurred, the insurer shall cause the
individual policy or group certificate of insurance to be delivered to the
debtor. Said application or notice of proposed insurance shall state that
upon acceptance by the insurer, the insurance shall become effective
as provided in section 5 of this chapter.
(e) If the named insurer does not accept the risk, then and in such
event the debtor shall receive a policy or certificate of insurance, if one
(1) can be obtained from another insurer, setting forth the name and
home office address of the substituted insurer and the amount of the
premium to be charged, and if the amount of premium is less than that
set forth in the notice of proposed insurance an appropriate refund shall
be made.
Formerly: Acts 1961, c.47, s.6. As amended by P.L.252-1985,
SEC.298; P.L.255-1995, SEC.8; P.L.136-2018, SEC.193.