North Dakota Administrative Code
Title 45 - Insurance, Commissioner of
Article 45-07 - Credit Insurance
Chapter 45-07-01.1 - Consumer Credit Insurance
Section 45-07-01.1-02 - Rights and treatment of debtors

1. Termination of group consumer credit insurance policy.

2. Remittance of premiums. If the creditor adds identifiable insurance charges or premiums for consumer credit insurance to the debt, and any direct or indirect finance, carrying, credit, or service charge is made to the debtor on the insurance charges or premiums, the creditor must remit and the insurer shall collect the premium within sixty days after it is added to the debt.

3. Refinancing of the debt. If the debt is discharged due to refinancing prior to the scheduled maturity date, the insurance in force shall be terminated before any new insurance may be issued in connection with the refinanced debt. In all cases of termination prior to scheduled maturity, a refund of all unearned premium or unearned insurance charges paid by the debtor shall be paid or credited to the debtor as provided in section 45-07-01.1-08. In any refinancing of the debt, the effective date of the coverage as respects any policy provision shall be deemed to be the first date on which the debtor became insured under the policy with respect to the debt which was refinanced, at least to extent of the amount and term of the debt outstanding at the time of refinancing of the debt.

4. Maximum aggregate provisions. A provision in an individual policy or group certificate which sets a maximum limit on total claim payments must apply only to that individual policy or group certificate.

5. Prepayment of debt. If a debtor prepays the debt in full, then any consumer credit insurance covering the debt shall be terminated and an appropriate refund of the consumer credit insurance premium shall be paid or credited to the debtor in accordance with section 45-07-01.1-08. However, if the prepayment is a result of death or any other lump sum consumer credit insurance payment, no refund shall be required for the coverage under which the lump sum was paid. If a claim under credit accident and health coverage or credit unemployment coverage is in progress at the time of prepayment, the amount of refund may be determined as if the prepayment did not occur until the payment of benefits terminates. No refund need be paid during any period of disability for which credit accident and health benefits are payable or during any period of unemployment for which credit unemployment benefits are payable. A refund shall be computed as if prepayment occurred at the end of the disability period or at the end of the unemployment period.