2016 Kentucky Revised Statutes CHAPTER 304 - INSURANCE CODE Subtitle 19 - Credit Life Insurance and Credit Health Insurance 304.19-060 Term of insurance.
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304.19-060 Term of insurance.
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The term of any credit life insurance or credit 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.
Where evidence of insurability is required and such evidence is furnished more than
thirty (30) days after the date when the debtor becomes obligated to the creditor, the
term of the insurance may commence on the date on which the insurer 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
original or revised 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 KRS 304.19-090.
Effective: June 18, 1970
History: Created 1970 Ky. Acts ch. 301, subtit. 19, sec. 6, effective June 18, 1970.
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