Section 1007.4 - Amount of credit life insurance and credit accident and health insurance(a) The initial amount of credit life insurance shall not exceed the total amount repayable under the contract of indebtedness. 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 scheduled amount of indebtedness or the amount of unpaid indebtedness, which ever is the greater, and where secured by a group policy of credit life insurance shall at no time exceed the amount of unpaid indebtedness.
(b) Notwithstanding any other provisions of this act, insurance on agricultural credit transaction commitments not exceeding one year in duration may be written up to the amount of the loan commitment on a non-decreasing or level term plan.(c) Notwithstanding any other provisions of this act or any other section, insurance on educational credit transaction commitments may be written for the amount of the portion of such commitment that has not been advanced by the creditor.(d) The total amount of periodic indemnity payable 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 the indebtedness and the amount of each periodic indemnity payment shall not exceed the original indebtedness divided by the number of periodic installments.1961, Sept. 2, P.L. 1232, § 4.