Hawaii Administrative Rules
Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS
Chapter 6 - CREDIT LIFE AND CREDIT DISABILITY INSURANCE
Subchapter 2 - RIGHTS AND TREATMENT OF DEBTORS
Section 16-6-8 - Voluntary prepayment of indebtedness
Current through August, 2024
If a debtor prepays the indebtedness other than as a result of the debtor's death or through a lump sum disability payment:
(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 section 16-6-13; provided insurance furnished by a prepaid individual policy may be continued if the debtor so elects in a separate written instrument signed and delivered to the insurer at the time of the prepayment;
(2) Any credit disability insurance covering the indebtedness shall be terminated and an appropriate refund of the credit disability insurance premium shall be paid to the debtor in accordance with section 16-6-13, and if a claim under such coverage is in progress at the time of prepayment, the claim shall continue as if there had been no prepayment; provided insurance furnished by a prepaid individual policy may be continued if the debtor so elects in a separate written instrument signed and delivered to the insurer at the time of the prepayment.