TITLE 41

INSURANCE

CHAPTER 23

CREDIT LIFE AND CREDIT DISABILITY INSURANCE

41-2306.  Amount of insurance. (1) Credit life insurance:

(a)  The amount of credit life insurance shall not exceed the initial indebtedness, however the indebtedness may be repayable.

(b)  In cases where an indebtedness is repayable in substantially equal instalments, the amount of insurance shall at no time exceed the scheduled or actual amount of unpaid indebtedness, whichever is greater.

(c)  Notwithstanding the provisions of (a) or (b) above, insurance on agricultural credit transactions not exceeding one year in duration may be written up to the amount of the loan commitment on a nondecreasing or level term plan.

(d)  Except, that the amount of insurance provided under a group insurance contract shall be subject to section 41-2005(4) (debtor groups).

(2)  Credit disability insurance: The total amount of indemnity payable by credit disability insurance in the event of disability, as defined in the policy, shall not exceed the aggregate of the periodic scheduled unpaid instalments of the indebtedness; and the amount of each periodic indemnity payment shall not exceed the original indebtedness divided by the number of periodic instalments.

History:

[41-2306, added 1961, ch. 330, sec. 541, p. 645.]