2014 Kentucky Revised Statutes CHAPTER 304 - INSURANCE CODE Subtitle 19 - Credit Life Insurance and Credit Health Insurance 19.19-070 Provisions of policies and certificates of insurance -- Disclosure to debtors.
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304.19-070 Provisions of policies and certificates of insurance -- Disclosure
to debtors.
(1)
(2)
(3)
(4)
(5)
All credit life insurance and credit health insurance shall be evidenced by an
individual policy, or in the case of group insurance by a certificate of insurance,
which individual policy or group certificate shall be delivered to the debtor.
Each individual policy or group certificate of credit life insurance and credit
health insurance shall, in addition to other requirements of law:
(a) Set forth the name and principal office address of the insurer, and the
identity of the person or persons insured, by name in the case of
individual policies;
(b) Set forth the rate or amount of payment, if any, by the debtor separately
for credit life insurance and credit health insurance, a description of the
amount, term and coverage including any exceptions, limitations and
restrictions; and
(c) State 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 his
estate.
The 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 section.
If a debtor makes a separate payment for credit life or credit health insurance
and an 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 shall be delivered at such time to
the debtor. The copy of the application or a notice of proposed insurance shall:
(a) Set forth the identity by name or otherwise of the person or persons
insured;
(b) Set forth the rate or amount of payment by the debtor, if any, separately
for credit life insurance and credit health insurance;
(c) Contain a statement that within thirty (30) days, if the insurance is
accepted by the insurer, there will be delivered to the debtor an individual
policy or group certificate of insurance containing the name and principal
office address of the insurer, a description of the amount, term and
coverage including any exceptions, limitations and restrictions; and
(d) Refer exclusively to insurance coverage, and 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 therein.
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.
Such application or notice of proposed insurance shall state that upon
acceptance by the insurer, the insurance shall become effective as provided in
KRS 304.19-060.
(6)
If the named insurer does not accept the risk, then the debtor shall receive a
refund of premium.
Effective:June 18, 1970
History: Created 1970 Ky. Acts ch. 301, subtit. 19, sec. 7, effective June 18, 1970.
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