Delaware Administrative Code
Title 18 - Insurance
1700 - Credit Life and Credit Health Insurance
1701 - Credit Life and Credit Health Insurance [Formerly Regulation 5]
Section 1701-4.0 - Collection and Remittance of Premiums
Current through Register Vol. 28, No. 3, September 1, 2024
4.1 A creditor may remit and an insurer may collect premiums on either a single premium basis or on a monthly outstanding balance basis, unless the creditor adds identifiable charges or premium for credit life insurance to the total amount of the indebtedness, and makes any direct or indirect finance, carrying, credit or service charge whatever to the debtor in connection with such insurance charge. Under such circumstances, the creditor has loaned the premium or insurance charge to the debtor and the premium or the insurance charge is deemed collected for the insurer as soon as it is added to the indebtedness, in which event the creditor must remit and an insurer must collect on a single premium basis only. A creditor may remit and an insurer may collect on the monthly outstanding balance basis if no direct or indirect finance, carrying, credit or service charge is made to the debtor in connection with the insurance charge of premium.