§ 24-A §2859 — Premium rates; refunds; accounts credited when insurance not issued

1.
Rates filed; life and health.
Any insurer may revise its schedules of premium rates from time to time, and shall file such revised schedules with the superintendent; however, no upward revision in insurance charges to debtors may be made in connection with closed-end credit that would apply to debtors whose credit insurance is already in force. In the case of open-end credit, the debtor must be given a 31-day notice prior to an upward revision unless a waiver of that notice is obtained from the superintendent, in which case the notice of the upward revision must be given at the next regular billing cycle. An insurer may not issue any credit life insurance policy or credit health insurance policy for which the premium rate exceeds that determined by the schedules of such insurer as then on file with the superintendent.
1-A.
Rates filed; property and casualty.
All rates charged in connection with credit property insurance or credit involuntary unemployment insurance must be filed in accordance with section 2304‑A. An insurer may not issue any credit property insurance or credit involuntary unemployment insurance policy for which the premium rate exceeds those rates then on file with the superintendent.
1-B.
Rating standards.
The superintendent may by rules adopted pursuant to section 2865 or chapter 40‑A establish specific rating standards for particular types of consumer credit insurance.
2.
Refund.
Each individual policy or group certificate shall provide that in the event of termination of the insurance prior to the scheduled maturity date of the indebtedness, any refund of an amount paid by the debtor for insurance must be paid or credited promptly to the debtor. The superintendent shall prescribe a minimum refund and no refund that would be less than such minimum need be made. The formula to be used in computing such refund must be filed with and approved by the superintendent.
3.
Accounts credited where insurance not issued.
If a creditor requires a debtor to make any payment for consumer credit insurance and an individual policy or group certificate of insurance is not issued, the creditor shall immediately give written notice to such debtor and shall promptly make an appropriate credit to the account.
4.
Termination.
Any policy for consumer credit insurance issued subsequent to the enactment of this section must contain a provision that the insurance provided for may be terminated under only the following conditions:

Legislative History

PL 1969, c. 132, §1 (NEW). PL 1973, c. 585, §12 (AMD). PL 1977, c. 672, §§3,4 (AMD). PL 1979, c. 127, §§156B-156D (AMD). PL 1993, c. 149, §§1-3 (AMD). PL 2001, c. 138, §12 (AMD).