Kentucky Administrative Regulations
Title 806 - PUBLIC PROTECTION CABINET - DEPARTMENT OF INSURANCE
Chapter 19 - Credit Life Insurance and Credit Health Insurance
Section 806 KAR 19:010 - Credit transaction requirements
Universal Citation: 806 KY Admin Regs Service 19:010
Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO: KRS 304.19-040, 304.19-080, 304.19-090
NECESSITY, FUNCTION, AND CONFORMITY: KRS 304.2-110 provides that the Commissioner of Insurance may make reasonable rules and regulations necessary for or as an aid to the effectuation of any provision of the Kentucky Insurance Code. This administrative regulation delineates conditions that must be met in the issuance of life insurance in connection with a credit transaction.
Section 1.
(1) The premiums charged for life insurance
issued in connection with credit transactions shall conform to the loan
schedule in the installment contract. Level term life insurance will be
permitted on level loans, as well as coverage which provides for term insurance
on consecutive reducing levels designed to reflect periodic (annual or
semiannual) reductions of the loan balance, and decreasing term or group
indebtedness coverage for loans providing for regular uniform monthly reduction
corresponding to the loan balance.
(2) The debtor shall acknowledge receipt of a
statement that indicates the maximum percentage of the loan payable at death
under the insurance policy if the policy does not cover the full amount of the
loan.
STATUTORY AUTHORITY: KRS 304.2-110
Disclaimer: These regulations may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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