§ 26.1-37-07 — Provisions of policies and certificates of insurance - Disclosure to debtors

debtors.
1. Before the debtor elects to purchase consumer credit insurance in connection with a
credit transaction, the following must be disclosed to the debtor in writing:
a. That the purchase of consumer credit insurance is optional and not a condition of
obtaining credit approval.
b. If more than one kind of consumer credit insurance is being made available to the
debtor, whether the debtor can purchase each kind separately or the multiple
coverages only as a package.
c. The conditions of eligibility, if any.
d. That if the consumer has other insurance that covers the risk, the consumer may
not want or need credit insurance.
e. That within the first thirty days after receiving the individual policy or group
certificate, the debtor may cancel the coverage and have all premiums paid by
the debtor refunded or credited. Thereafter, the debtor may cancel the policy at
any time during the term of the loan and receive a refund of any of the unearned
premium. However, only in those instances when insurance is a requirement for
the extension of credit, the debtor may be required to offer evidence of alternative
insurance acceptable to the creditor at the time of cancellation.
f. A brief description of the coverage, including a description of the amount, the
term, any exceptions, limitations, and exclusions, the insured event, any waiting

or elimination period, any deductible, any applicable waiver of premium provision,
to whom the benefits would be paid, and the premium rate for each coverage or
for all coverages in a package.
g. That if the premium or insurance charge is financed, it will be subject to finance
charges at the rate applicable to the credit transaction.
2. The disclosures in subsection 1 must be provided in the following manner:
a. In connection with consumer credit insurance offered contemporaneously with the
extension of credit or offered through direct mail advertisements, disclosure must
be made in writing and presented to the consumer in a clear and conspicuous
manner.
b. In conjunction with the offer of credit insurance subsequent to the extension of
credit by other than direct mail advertisements, disclosure may be provided orally
so long as written disclosures are provided to the debtor no later than the earlier
of:
(1) Ten days after the election of coverage; or
(2) The date any other written material is provided to the debtor.
3. All consumer credit insurance must be evidenced by an individual policy or a group
certificate of insurance which must be delivered to the debtor.
4. The individual policy or group certificate must, in addition to other requirements of law,
set forth the following:
a. The name and home-office address of the insurer;
b. The name or names of the debtor or debtors or in the case of a group certificate,
the identity by name or otherwise of the debtor or debtors;
c. The premium or amount of payment by the debtor separately for each kind of
coverage or for all coverages in a package, except that for open-end loans, the
premium rate and the balance to which the premium rate applies;
d. A full description of the coverage or coverages, including the amount and term
thereof, and any exceptions, limitations, and exclusions;
e. A statement that the benefits will be paid to the creditor to reduce or extinguish
the unpaid debt or to repair or replace the property and, whenever the amount of
insurance benefit exceeds the unpaid debt that any excess is payable to a
beneficiary, other than the creditor, named by the debtor or to the debtor's estate;
and
f. If the scheduled term of insurance is less than the scheduled term of the credit
transaction, a statement to that effect on the face of the individual policy or group
certificate in not less than ten-point bold-faced type.
5. Unless the individual policy or group certificate of insurance is delivered to the debtor
at the time the debt is incurred, or at such other time that the debtor elects to purchase
coverage, a copy of the application for the policy or a notice of proposed insurance,
signed by the debtor and setting forth the name and home-office address of the
insurer, the name or names of the debtor, the premium or amount of payment by the
debtor for the insurance and the amount, term, and a brief description of the coverage
provided, must be delivered to the debtor at the time the debt is incurred or the
election to purchase coverage is made. The copy of the application or notice of
proposed insurance must also refer exclusively to insurance coverage, and must 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 that material. Upon acceptance of the insurance by the insurer
and within thirty days of the date upon which the debt is incurred or the election to
purchase coverage is made, the insurer shall cause the individual policy or group
certificate of insurance to be delivered to the debtor. The application or notice of
proposed insurance must state that upon acceptance by the insurer, the insurance
becomes effective as provided in section 26.1-37-06.
6. The application, notice of proposed insurance, or certificate may be used to fulfill all of
the requirements of subsections 1 and 4 if it contains all of the information required by
those subsections.

7. The debtor has thirty days from the date the debtor receives either the individual policy
or the group certificate to review the coverage purchased. At any time within the
thirty-day period, the debtor may contact the creditor or insurer issuing the policy or
certificate and request that the coverage be canceled. The individual policy or group
certificate may require the request to be in writing or that the policy or certificate be
returned to the insurer, or both. The debtor must, within thirty days of the request,
receive a full refund or credit of all premiums or insurance charges paid by the debtor.
8. If the named insurer does not accept the risk, the debtor must receive a policy or
certificate of insurance 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 must be made within thirty days. If no insurer accepts the risk, then all
premiums paid must be refunded or credited within thirty days of application to the
person entitled thereto.
9. For the purpose of subsection 5, an individual policy or group certificate delivered in
conjunction with an open-end consumer credit agreement or any consumer credit
insurance requested by the debtor after the date of the debt must be deemed to be
delivered at the time the debt is incurred or election to purchase coverage is made if
the delivery occurs within thirty days of the date the insurance is effective.
10. An individual policy or group certificate delivered in conjunction with an open-end
credit agreement continues from its effective date through the term of the agreement
unless the individual policy or group certificate is terminated in accordance with its
terms at an earlier date.
11. Credit property insurance coverage, at a minimum, must include the coverages in the
standard fire policy with coverage attachment and extended coverage endorsement
and must cover a substantial risk of loss of or damage to the property related to the
credit transaction.