Each individual policy or group certificate of credit life
insurance or credit accident and health insurance delivered or issued
for delivery in this state must, in addition to the other requirements
of law, set forth:
(1) the name and home office mailing address of the
insurer, and on group certificates of insurance, an identification
of the master policy;
(2) the name and age or birth date of the insured debtor
(or debtors, if joint life);
(3) the full amount of premium or the total identifiable
insurance charge, if any, to the debtor, stated separately for credit
life insurance and for credit accident and health insurance; however,
if the indebtedness is an open-end transaction, there must be set
forth, separately for credit life and credit accident and health insurance,
the rate of insurance charge or payment per unit of coverage and how
each charge is derived;
(4) the amount of insurance coverage;
(5) the effective date of insurance, and the termination
date of insurance. The termination date may not extend more than 15
days beyond the scheduled maturity date of the indebtedness except
when extended without additional cost to the debtor. If the indebtedness
is an open-end transaction, in lieu of the termination date, the conditions
of termination must be set forth;
(6) a description of the coverage;
(7) any and all exceptions, limitations, and restrictions
to the coverage;
(8) a statement that the benefits, to the extent necessary
to extinguish the unpaid amount of the indebtedness, will be paid
to the creditor as first beneficiary, and will be applied by the creditor
to reduce or extinguish such indebtedness; and a statement that wherever
the insurance benefits may exceed the amount necessary to extinguish
the indebtedness, any such excess must be paid by separate check or
draft of the insurer to the insured debtor, if then living; otherwise,
to a second beneficiary named by the debtor, or a second insured debtor
or, in the absence of such designation, to the surviving spouse or
to the debtor's estate;
(9) a statement indicating that upon discharge of the
indebtedness, the insurance will be terminated, but without prejudice
to any claim originating prior to such termination, and that in all
cases of termination prior to scheduled maturity, a refund of any
unearned amount of premium paid by or charged to the debtor for insurance
will be made in accordance with the appropriate formula set forth
in §3.5901 of this title (relating to Refund of Unearned Premiums)
and §3.5906 of this title (relating to Treatment of Partial Months).
Such refund must be paid or credited to the account of the debtor,
or paid to the second beneficiary, if the debtor is not living. No
such refund is required if the total amount thereof is less than $3.00.
(For insurance coverage subject to Finance Code Chapters 341, 342,
and 345 - 348, a refund must be made, except that no cash refund will
be required if the amount thereof is less than $1.00.)
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| Source Note: The provisions of this §3.5103 adopted to be effective October 1, 1980, 5 TexReg 2772; amended to be effective March 19, 1984, 9 TexReg 1357; amended to be effective February 4, 1985, 10 TexReg 250; amended to be effective June 30, 1992, 17 TexReg 4345; amended to be effective May 11, 2022, 47 TexReg 2758 |
