Code of Maryland Regulations
Title 31 - MARYLAND INSURANCE ADMINISTRATION
Subtitle 13 - CREDIT LIFE AND CREDIT HEALTH INSURANCE
Chapter 31.13.01 - Standards for Credit Life and Credit Health Insurance
Section 31.13.01.24 - Notice to Debtors
Current through Register Vol. 51, No. 19, September 20, 2024
A. If a debtor is covered by a group credit life or credit health insurance policy providing for payment of premiums to the insurer on a monthly outstanding balance basis, the policy shall provide that in the event of termination of the policy for any reason the insured debtor shall be given written notice of termination, and that coverage will continue for at least 31 days from the date of notice, except when replacement of the coverage by the same or another insurer in the same or greater amount takes place without interruption of coverage and a new certificate reflecting the replacement coverage is delivered to the insured debtor. The notice of termination required by this section shall be given by the insurer unless the insurer is unable to identify the debtors, in which case it shall be given by the creditor. There shall be a prominent notice printed or stamped close to the schedule of benefits in the certificate form that the insurance coverage will terminate if the group policy terminates. An insurer also may include notice of additional events that would lead to termination of insurance coverage.
B. If a credit life insurance policy is issued under which the benefit upon death may not completely extinguish the total principal indebtedness even if the loan account and the insurance premiums are paid on a current basis, or if a credit health insurance policy is so written that in event of disability the monthly benefit may not cover payment of the entire scheduled monthly loan installment or the total benefit may not cover payment of all of the unpaid scheduled installments under the loan, even if the loan account and the insurance premiums are paid on a current basis, then there shall be a notice to this effect in the individual policy or in certificates of insurance issued under a group policy. This notice shall be prominently printed or stamped close to the schedule of benefits in the policy and in the certificate form.
C. If a policy or certificate of credit life or credit health insurance contains any age limitations, there must be printed in, or close to, the schedule of benefits, language clearly calling attention to the limitation.
D. If a policy or certificate of credit life or credit health insurance insuring open lines of credit requires evidence of insurability for advances of credit, there shall be printed in, or close to, the schedule of benefits, language clearly calling attention to the evidence of insurability requirement.
