Ala. Admin. Code r. 482-1-117-.08
Current through Register Vol. 43, No. 1, October 31, 2024
Section 482-1-117-.08 - Provisions Of Policies And Certificates Of Insurance(1) All consumer credit insurance shall be evidenced by an individual policy or a group certificate of insurance which shall be delivered to the debtor.(2) The individual policy or group certificate shall, in addition to other requirements of law, set forth all of 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 (e.g., loan number) of the debtor or debtors.(c) The premium rate and basis of calculation or the premium or amount of payment to be paid by the debtor, separately for each kind of coverage or for all coverages in a package.(d) A full description of the coverage or coverages including the amount and term thereof, and any exceptions, limitation and exclusions.(e) A statement that the benefits shall be paid to the creditor to reduce or extinguish the unpaid debt and, whenever the amount of insurance benefit exceeds the unpaid debt that any such excess shall be payable to a beneficiary, other than the creditor, named by the debtor, or to the debtor's estate.(3)(a) At the time the debt is incurred, or at such other time that the debtor elects to purchase coverage, one of the following shall be delivered to the debtor: 1. The individual policy or group certificate of insurance.2. A copy of the application for insurance.3. A notice of proposed insurance setting forth the name and home office address of the insurer, the name or names of the debtor, the premium rate or amount of payment by the debtor for the insurance, and the amount, term (if fixed) and type of coverage provided.(b) An individual policy or group certificate delivered in conjunction with an open-end credit plan or any consumer credit insurance requested by the debtor after the date of the debt, or by telephone, electronic terminal or other remote means, shall 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 (30) days of the date the insurance is effective.(c) The application for insurance or notice of proposed insurance shall be distinct from the basic credit transaction agreement, or statement of account in the case of an open-end credit, which requirement may be satisfied if such information is prominently set forth by typeface, in graphics or otherwise.(d) Within thirty (30) days of receipt by the insurer of all information required for a determination of insurability, and upon acceptance of the insurance by the insurer, the insurer shall cause the individual policy or group certificate of insurance to be delivered to the debtor.(e) The application for insurance or notice of proposed insurance shall state that upon acceptance by the insurer the insurance shall become effective as provided in Rule 482-1-117-.07.(4) The debtor has thirty (30) days from the date that he or she receives either the individual policy or the group certificate to review the coverage purchased. At any time within the thirty (30) day period, the debtor may contact the creditor or insurer as provided for in the individual policy or group 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 shall, within fifteen (15) days after the request, receive a full refund or credit of all premiums or insurance charges paid by or charged to the debtor, provided no loss has occurred and no claim has been made.(5) An individual policy or group certificate delivered in conjunction with an open-end credit agreement shall continue 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. Author: Reyn Norman, Associate Counsel
Ala. Admin. Code r. 482-1-117-.08
New Rule: October 14, 1999; effective November 1, 1999. Filed for codification in the Alabama Administrative Code by the Department of Insurance on January 17, 2003, pursuant to the Code of Ala. 1975, § 27-7-43.Statutory Authority:Code of Ala. 1975, § 27-2-17.