N.J. Admin. Code § 11:2-3.4

Current through Register Vol. 56, No. 24, December 18, 2024

Section 11:2-3.4 - Amount

(a) The amount of credit life insurance issued in connection with a specific loan or other credit transaction shall not exceed the indebtedness.

(b) Where an indebtedness repayable in substantially equal installments is secured by an individual policy of credit life insurance, the amount of insurance shall at no time exceed the approximate unpaid indebtedness and, where secured by a group policy of credit life insurance shall at no time exceed the exact amount of unpaid indebtedness.

(c) The amount of indemnity payable in connection with a specific loan or other credit transaction by credit accident and health insurance in the event of disability, as defined in the policy, shall not exceed the aggregate of the periodic scheduled unpaid installments of indebtedness; and the amount of each periodic indemnity payment shall not exceed the original indebtedness divided by the number of periodic installments.

N.J. Admin. Code § 11:2-3.4