Section Ins 1201.04 - Rights and Treatment of Debtors(a) Limits on the amounts of credit life insurance and credit accident and health insurance permitted by statute shall be as stated in RSA 408-A:4.(b) If a creditor makes available to the debtors more than one plan of credit life insurance or more than one plan of credit accident and health insurance, each debtor shall be informed of all such plans applicable to the type of loan or transaction involving that debtor.(c) When a creditor requires credit life insurance, credit accident and health insurance, or both, as additional security for an indebtedness, the debtor shall be given the option of furnishing the required amount of insurance through existing policies of insurance owned or controlled by him or her or procuring and furnishing the required coverage through any insurer authorized to transact insurance business in this state. If this paragraph is applicable, the debtor shall be informed by the creditor of his or her right to provide alternative coverage before the transaction is completed.(d) All credit insurance claims shall be processed in accordance with RSA 408-A:10.(e) Termination of coverage shall be conducted as follows:(1) If a debtor is covered by a group credit insurance policy providing for the payment of single premiums to the insurer, then provision shall be made by the insurer that in the event of termination of the policy for any reason, insurance coverage with respect to any debtor insured under such policy shall be continued for the entire period for which the single premium has been paid, subject to the debtor's right to cancel the insurance at any time by express action and subject to individual terminations as set forth in (i) and (j) below; or(2) If a debtor is covered by a group credit insurance policy providing for the payment of premiums to the insurer on a monthly outstanding balance basis, then the policy shall provide that, in the event of termination of such policy for whatever reason, the insured debtor shall be notified that coverage will continue for 30 days from the date of notice, except where replacement of the coverage by the same or another insurer in the same or greater amount takes place without lapse of coverage; and(3) The notice required in subparagraph (e)(2) shall be given by the insurer or, at the option of the insurer, by the creditor.(f) If the creditor adds identifiable insurance charges or premiums for credit insurance to the indebtedness, and any direct or indirect finance, carrying, credit, or service charge is made to the debtor on such insurance charges or premiums, the creditor shall remit and the insurer shall collect such premium within 60 days after it is added to the indebtedness.(g) 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 such termination prior to scheduled maturity, a refund shall be paid or credited to the debtor as provided in Ins 1201.04(i) below. In any renewal or refinancing of the indebtedness, the effective date of the coverage as respects any policy provision shall be deemed to be the first date on which the debtor became insured under the policy covering the indebtedness which was renewed or refinanced, at least to the extent of the amount and term of the indebtedness outstanding at the time of renewal and refinancing of the debt.(h) A provision in a policy or certificate that sets a maximum limit on total payments shall apply only to that policy or certificate.(i) If a debtor prepays his or her indebtedness other than as a result of his or her death or through a lump sum disability payment, the following shall apply: (1) Any credit life insurance covering such indebtedness shall be terminated, and an appropriate refund of the credit life insurance premium shall be paid to the debtor in accordance with Ins 1201.05;(2) Any credit accident and health insurance covering such indebtedness shall be terminated, and an appropriate refund of the credit accident and health insurance premium shall be paid to the debtor in accordance with Ins 1201.05;(3) If a claim under such coverage is in progress at the time of prepayment, the policy shall not terminate until the claim terminates, therefore such claim shall continue as if there had been no prepayment, but payment of the refund may be delayed until the claim terminates;(4) The amount of refund may be determined as if the prepayment did not occur until the payment of benefits terminates;(5) No refund shall have to be paid during any period of disability for which credit accident and health benefits are payable as the policy shall not terminate until such benefits are no longer payable; and(6) A refund shall be computed as if prepayment occurred at the end of the disability period.(j) If an indebtedness is prepaid by the proceeds of a credit life insurance policy covering the debtor or by a lump sum payment of a disability claim under a credit accident and health insurance policy covering the debtor, then it shall be the responsibility of the insurer to see that the following refunds are paid to the insured debtor, if living, or the beneficiary, other than the creditor, named by the debtor or to the debtor's estate:(1) In the case of prepayment by the proceeds of a credit life insurance policy or by the proceeds of a lump sum total and permanent disability benefit under credit life coverage, an appropriate refund of the credit accident and health insurance premium in accordance with Ins 1201.05;(2) In the case of prepayment by a lump sum disability claim, an appropriate refund of credit life insurance premium in accordance with Ins 1201.05; and(3) In either case, the amount of the benefits in excess of the amount required to repay the indebtedness after crediting any unearned interest or finance charges.N.H. Admin. Code § Ins 1201.04
#1900, eff 1-1-82; ss by #2441, eff 1-1-84; amd by #3196, eff 2-5-86; ss by #4287, eff 7-1-87; ss by #5650, eff 7-1-93, EXPIRED 7-1-99
New. #7146, eff 4-1-00, EXPIRED: 4-1-08
New. #9611, eff 1-4-10
Amended by Volume XXXVIII Number 06, Filed February 8, 2018, Proposed by #12474, Effective 2/2/2018, Expires 2/2/2028.