(1)
Written Disclosures. Before the purchase of credit
life or credit accident and health insurance related to a transaction in which
credit will be offered or extended to a consumer primarily for personal, family
or household purposes, the following shall be disclosed to the consumer(s) in
writing:
(a) If other insurance exists that
covers the risk or that may cover the risk, one may not want or need credit
insurance.
(b) A brief description
of the coverage, including:
1. The
amount;
2. The term;
3. Any exceptions, limitations and
exclusions;
4. The insured
event(s);
5. Any waiting or
elimination period;
6. Any
deductible;
7. Any applicable
waiver of premium provision;
8. To
whom the benefits would be paid;
9.
The premium rate or, if applicable, the actual premium charge for each coverage
or for all coverages in a package.
(c) The financing rate, if any.
(d) If more than one kind of credit insurance
is being made available, the ability of the consumer(s) to purchase each kind
of credit insurance separately or only as a package.
(e) The conditions of eligibility.
(f) The conditions for cancellation and the
method of refund of unearned premiums.
(2)
Procedures for Written
Disclosures. The above disclosures shall be provided to the
consumer(s) in the following manner:
(a) For
credit life or credit accident and health insurance offered with the extension
of credit or offered through a direct mail advertisement, disclosure shall be
made in writing prior to the close of the credit insurance transaction and
presented clearly and conspicuously.
(b) For the offer of credit life or credit
accident and health insurance subsequent to the extension of credit by other
than direct mail advertisements, disclosure may be provided orally if written
disclosures are provided no later than the earlier of:
1. Ten calendar days after the offer,
or;
2. The date any other written
material is provided to the consumer(s).
(3)
Copy of the Credit Insurance
Application. Unless the individual policy or group certificate of
insurance is delivered at the time the debt is incurred, or at such other time
that one elects to purchase coverage, the following shall be delivered to the
consumer(s) prior to the close of the credit insurance transaction:
(a) A copy of the application for the policy
or a notice of proposed insurance which:
1.
Is signed by the consumer(s).
2.
Sets forth the name and address of the insurer.
3. Sets forth the name or names of the
consumer(s).
Said copy of the application or notice of proposed insurance
shall refer solely to insurance coverage. Said application shall be separate
and apart from the loan, sale, or other statement of account, instrument or
agreement, unless the information required by 211 CMR 143.02(3) is prominently
set forth therein.
(b) The premium rate or amount of payment for
the insurance.
(c) The amount, term
and a brief description of the coverage provided.
