New Hampshire Code of Administrative Rules
Ins - Commissioner, Insurance Department
Chapter Ins 1200 - CREDIT INSURANCE
Part Ins 1201 - CREDIT LIFE AND CREDIT ACCIDENT AND HEALTH INSURANCE
Section Ins 1201.16 - Special Rules For Open-End Credit Transactions
Current through Register No. 12, March 21, 2024
(a) The procedures in this section shall govern the sale of credit insurance sold in connection with open-end credit transactions, which are sometimes called revolving charge accounts and similar names. Where not inconsistent, other sections of this part shall also apply to this category of credit insurance.
(b) Coverage may be provided only under group insurance policies.
(c) All credit insurance written hereunder shall be on the monthly outstanding balance basis.
(d) Disclosure to debtor shall include:
(e) A debtor under an open-end credit agreement may be enrolled only by his or her affirmative, written agreement, if a charge for the insurance is to be made to him or her. If benefits under the plan are to be reduced or if premiums are to be increased, notice of such action shall be given the debtor, and he or she shall be advised as to the manner in which he or she may discontinue the coverage.
(f) The amount of life insurance during any monthly period shall not be less than the amount for which a premium has been paid by the debtor for that period. Any proceeds of a life insurance policy in excess of the amount required to discharge the indebtedness completely shall be paid to the beneficiary named by the debtor, or if none, to his or her estate.
(g) A debtor's insurance may be terminated only as follows:
(h) The premium rates charged for credit insurance covering open-end credit transactions shall be consistent with the premium rates charged for other forms of credit insurance. The actual premium rates specified in Ins 1201.18 apply to credit insurance covering open-end credit transactions as well as all other forms of credit insurance.
(i) In the event of termination of a debtor's insurance, a pro rata refund of unearned premium, if any, shall be made to the debtor. No refund shall be required if it is less than $1.00.
(j) With respect to credit accident and health insurance, the insurer may include provisions indicating that the pre-existing condition limitations are to apply separately to each advance.
(k) The notice, certificate, or both, in (d)(1) above shall be furnished at least once while the account remains active.
(l) The effective date of the insurance required to be disclosed in the notice and/or certificate in (d)(2) above shall not be later than 30 days after the debtor makes written application for such insurance and agrees to pay the required premium.
#1900, eff 1-1-82; ss by #2441, eff 1-1-84; ss by #4287, eff 7-1-87; ss by #5650, eff 7-1-93, EXPIRED 7-1-99
New. #7146, eff 4-1-00, EXPIRED: 4-1-08
New. #9611, eff 1-4-10