Current through Register Vol. XLI, No. 38, September 20, 2024
4.1. The following shall
be disclosed to the debtor in writing, and may be combined with other disclosures
required by W. Va. Code §
46A-3-109(b)(4),
or by federal laws and regulations:
4.1.a. That
the purchase of credit personal property insurance through the creditor is optional
and not a condition of obtaining credit approval;
4.1.b. If more than one kind of credit insurance
is being made available to the debtor, that the debtor can purchase credit personal
property insurance separately;
4.1.c.
That if the consumer has other insurance that covers the risk, he or she may not
want or need credit personal property insurance;
4.1.d. That within the first thirty days after
receiving the individual policy or certificate of insurance, the debtor may cancel
the coverage and have all premium paid by the debtor refunded or credited.
Thereafter, the debtor may cancel the policy at any time during the term of the loan
and receive a refund of any unearned premium. However, only in those instances where
the creditor requires evidence of insurance for the extension of credit, the debtor
may be required to offer evidence of alternative insurance acceptable to the
creditor at the time of cancellation;
4.1.e. If not already contained in the certificate
or policy received contemporaneously with the credit transaction, a brief
description of the coverage, including a description of the major perils and
exclusions, any deductible, to whom the benefits would be paid, and the premium or
premium rate for the credit personal property coverage; and
4.1.f. If the premium or insurance charge is
financed, that it will be subject to finance charges at the rate applicable to the
credit transaction.
4.2. The
disclosures required in subsection 4.1 of this section shall be provided in the
following manner:
4.2.a. In connection with credit
personal property insurance offered contemporaneously with the extension of credit
or offered through direct mail advertisements, the disclosures shall be made in
writing and presented to the consumer in a clear and conspicuous manner;
and
4.2.b. When the offer of credit
personal property insurance is subsequent to the extension of credit or not offered
by direct mail advertisements, the disclosures may be provided in conjunction with
the offer either orally or electronically so long as written disclosures are
provided to the debtor no later than the earlier of:
4.2.b.1. Ten days after the election to purchase
the credit personal property insurance; or
4.2.b.2. The date any other written material is
provided to the debtor.
4.3. An offer to extend coverage for an open-end
consumer transaction shall include, at the time of the invitation to contract, the
written disclosure below in no smaller than twelve-point type. If the solicitation
is made by telephone the disclosure may be summarized and given orally, provided
that written disclosure is mailed to the debtor within ten days of enrollment.
"This coverage might duplicate existing coverage if you have a
residential property insurance policy. It applies to any item of covered property on
which you owe a debt. This coverage is primary, so it is the first source to be used
in the event of a loss on property it covers. You may cancel this coverage at any
time by calling the insurer at the telephone number provided to you, or by writing
to the insurer. We are charging you a premium that may be based on things for which
a claim cannot be made, such as services, meals or other consumables, entertainment,
finance or service fees, loan interest, delivery charges or other insurance
premiums."
4.4. All credit
personal property insurance shall be evidenced by an individual policy or a
certificate of insurance that shall be delivered to the debtor. The individual
policy or certificate of insurance shall, in addition to other requirements of law,
set forth the following:
4.4.a. The name and home
office address of the insurer;
4.4.b.
The name or names of the debtor or debtors, or, in the case of a certificate of
insurance, the identity by name or otherwise of the debtor or debtors;
4.4.c. The premium or amount of payment by the
debtor, except that for open-end credit, the premium rate and balance to which the
rate applies shall be specified;
4.4.d.
A full description of the coverage or coverages including the amount and term
thereof, and any exceptions, limitations, and exclusions;
4.4.e. A statement that the benefits shall be paid
to the creditor to reduce or extinguish the unpaid debt or to repair or replace the
property and, whenever the amount of loss payment exceeds the unpaid debt, that any
excess payment shall be payable to the debtor;
4.4.f. If the scheduled term of the insurance is
less than the scheduled term of the credit transaction, a statement to that effect
on the face of the individual policy or certificate of insurance in not less than
twelve-point bold face type; and
4.4.g.
If the policy is issued to cover open-end consumer transactions, it shall provide
that the policyholder or certificate holder will be furnished the following
disclosure notice with the account statement at least annually in no smaller than
twelve-point type:
"You are paying credit property insurance premium based on the
outstanding balance of this account. You may cancel this coverage at any time by
calling the insurer at the telephone number the insurer has provided to you, or by
writing to the insurer. Your premium may be based on things for which a claim cannot
be made, such as services, meals or other consumables, entertainment, finance or
service fees, loan interest, delivery charges, or other insurance premiums."
4.5. Except as provided in
subsection 4.6, the individual policy or group certificate shall be delivered to the
debtor upon acceptance of the insurance by the insurer.
4.6. An individual policy or group certificate
delivered in conjunction with an open-end credit agreement or any credit personal
property insurance requested by the debtor after the date the indebtedness is
incurred shall be delivered within thirty days of the date the insurance is
requested by the debtor.
