| (a) The group policy and certificate of insurance shall set forth that the debtor will be furnished a statement each billing cycle (but not less frequently than quarterly) which contains the following: (1) the amount of the debtor's insurance charge, shown separately for credit life and credit accident and health insurance; (2) the amount of the insured's indebtedness to which the insurance charge rate was applied; (3) the date the rate was applied; (4) the period covered by such monthly charge; and (5) notification of any rate change at least one billing cycle prior to the effective date of change. If the change is mandated by other legal requirements to take effect prior to the date of the next billing cycle, notice of any rate change must be given at least 30 days prior to the effective date of the rate change; and (6) notification of any
pre-established insurance termination date due to underwriting or eligibility guidelines. (b) The group policy and certificate of insurance shall state that the debtor shall be given written notice of any change of premium rate. The notice shall contain language advising the debtor to attach the notice of rate change to their certificate of insurance. (c) All forms, including the debtor's application and enrollment form, shall contain an identifying form number as required in §3.5201 of this title (relating to Submission of Form and Rate Filings).
|
