§ 26-17-104 — Debtor groups for benefit of creditor

Wyoming § 26-17-104

• Jurisdiction: Wyoming
• Title 26: Insurance Code
• Ch. 17: GROUP LIFE INSURANCE

Text

(a) The lives of a group of individuals may be insured
under a policy issued to a creditor, a creditor's parent holding
company or a trustee or agent designated by two (2) or more
creditors, which creditor, holding company, affiliate, trustee
or agent is deemed the policyholder, to insure debtors of the
creditor concerning their indebtedness, subject to the following
requirements:
(i) All debtors or any class of debtors of the
creditor are eligible for insurance under the terms of the
policy;
(ii) The policy may provide that the term "debtors"
shall include:
(A) Borrowers of money or purchasers or lessees
of goods, services or property for which payment is arranged
through a credit transaction;
(B) The debtors of one (1) or more subsidiary
corporations; and
(C) The debtors of one (1) or more affiliated
corporations, proprietors or partnerships if the business of the
policyholder and of the affiliated corporations, proprietors or
partnerships is under common control.
(iii) Repealed by Laws 1990, ch. 3, § 3.
(iv) Policy premiums shall be paid by the
policyholder, subject to the following requirements:
(A) Repealed by Laws 1990, ch. 3, § 3.
(B) Repealed by Laws 1990, ch. 3, § 3.
(C) If the insured debtor does not pay any part
of the premium for his insurance, the policy shall insure all
eligible debtors, except those who reject the coverage in
writing and those who do not present evidence of individual
insurability satisfactory to the insurer.
(v) Repealed by Laws 1990, ch. 3, § 3.
(vi) The policy may exclude from the classes eligible
for insurance classes of debtors determined by age;
(vii) The total amount of insurance payable for an
indebtedness shall not exceed the greater of the scheduled or
actual amount of unpaid indebtedness to the creditor, except
that insurance written concerning open-end credit having a
credit limit exceeding ten thousand dollars ($10,000.00) may be
in an amount not exceeding the credit limit;
(viii) The insurance may be payable to the creditor
or any successor to the right, title and interest of the
creditor. The payment shall reduce or extinguish the unpaid
indebtedness of the debtor to the extent of the payment and any
excess of the insurance is payable to the insured or the estate
of the insured;
(ix) Notwithstanding paragraphs (i) through (viii) of
this subsection, insurance on agricultural credit transaction
commitments may be written up to the amount of the loan
commitment on a nondecreasing or level term plan. Insurance on
educational credit transaction commitments may be written up to
the amount of the loan commitment less the amount of any
repayments made on the loan.