Current through Bulletin 2024-24, December 15, 2024
Section R590-91-12 - Disclosure to Debtor(1) When a premium or identifiable charge is payable by a debtor for credit insurance coverage, the following information must be disclosed to the debtor at the time the debtor applies for the insurance:(a) the optional nature of the coverage;(b) each premium or identifiable charge separately listed by type of coverage;(c) any eligibility requirement, including a health restriction or at-work requirement; and(d) any age restriction regarding eligibility for insurance coverage at the time the indebtedness is incurred or stopped due to the debtor reaching a specific age.(2) The disclosures in Subsection (1) shall be made to the principal debtor.(3) The principal debtor shall receive a copy of the disclosures.(4) The disclosures shall be retained in accordance with state and federal law.(5) The disclosure language shall be prominently displayed near the signature space for the election to obtain coverage.(6) The disclosures in Subsection (1) may be made in conjunction with: (a) the Federal Truth-In-Lending disclosure;(b) a Notice of Proposed Insurance;(d) the policy or certificate.(7) If, during the term of the loan, the insurance is insufficient to pay off the scheduled outstanding loan balance, the policy or certificate must clearly and prominently disclose to the prospective insured that the insurance is insufficient to pay off the outstanding loan balance.(8) Each credit insurance policy and certificate shall clearly describe the benefit amount and the term of coverage.(9) When the amount of credit life insurance exceeds the unpaid indebtedness: (a) the certificate or policy shall clearly disclose the excess; and(b) the excess shall be paid to the debtor's named beneficiary, other than the creditor, or to the debtor's estate.(10) If any policy or certificate has a preexisting condition exclusion, the exclusion shall be clearly and prominently disclosed.Utah Admin. Code R590-91-12
Adopted by Utah State Bulletin Number 2022-07, effective 3/25/2022