N.J. Admin. Code § 11:2-3.13

Current through Register Vol. 56, No. 9, May 6, 2024

Section 11:2-3.13 - Application or notice of proposed insurance

(a) If an individual policy or certificate of group 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 signed by the debtor shall be delivered to the debtor at the time such indebtedness is incurred, setting forth the following information:

1. The name and home office address of the insurer;

2. The name or names of the debtor proposed for insurance;

3. The rate or amount of payment, if any, collected from the debtor separately in connection with credit life insurance and credit accident and health insurance;

4. The amount and term of the coverage provided which, in the case of group insurance, may be by description rather than by stated amount and term; and

5. A brief description of the coverage provided.

(b) Such application for an individual policy or notice of proposed group insurance shall include in substance a statement that, if the insurance is declined by the insurer or otherwise does not become effective, any premium or payment for insurance collected from the debtor will be refunded to him pursuant to the provisions of 11:2-3.2 0.

(c) The copy of the application for an individual policy and the notice of proposed insurance shall refer exclusively to insurance coverage and be set forth in a separate instrument, except that it may be included in the loan, sale or other credit statement of account, agreement or other such instrument if set forth therein in type at least equal in size and prominence to the type used for the other provisions thereof.

(d) If included in the loan, sale or other credit statement of account, agreement or other such instrument, such application or notice must be set forth in a separate provision, except that the name of the debtor proposed for insurance, any figures relating to the amount and term of the coverage, and the rate or amount of payment, if any, collected from the debtor may be set forth elsewhere in the instrument.

(e) The application or notice of proposed insurance shall provide that, upon acceptance by the insurer, the insurance coverage provided shall become effective at the time determined as set forth in 11:2-3.5.

N.J. Admin. Code § 11:2-3.13

Amended by R.1996 d.3, effective 1/2/1996.
See: 27 N.J.R. 3278(b), 28 N.J.R. 152(b).
Recodified from 11:2-3.8 and amended by R.1996 d.206, effective 5/20/1996.
See: 27 N.J.R. 3676(a), 28 N.J.R. 2621(a).
Former section, "Maximum payments by debtors", recodified to 11:2-3.19.