Consumer Credit Insurance Model Regulation

What this document is

Consumer Credit Insurance Model Regulation is a naic model law published by National Association of Insurance Commissioners (NAIC). It is one of the documents that insurance license exam questions are written from, including life & health practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• NAIC Consumer Credit Insurance Model Regulation (#370) § 6 (Credit Life Insurance Rates)

  “(1) Coverage for death by whatever means caused, except that coverage may exclude death resulting from: (a) War or any act of war; (b) Suicide within six (6) months after the effective date of the coverage; or, (c) Subject to the provisions of Section 6B(2), a preexisting condition or conditions.”

• NAIC Consumer Credit Insurance Model Regulation (#370) § 3 (Rights and Treatment of Debtors)

  “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.”

• NAIC Consumer Credit Insurance Model Regulation (#370) § 3D (Remittance of Premiums)

  “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...”

• NAIC Consumer Credit Insurance Model Regulation (#370) § 3G (Prepayment of Debt)

  “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.”

• NAIC Consumer Credit Insurance Model Regulation (#370) § 9A (Refund Formulas)

  “In the event of termination, no charge for consumer credit insurance may be made for the first fifteen (15) days of a month and a full month may be charged for sixteen (16) days or more of a month.”

• NAIC Consumer Credit Insurance Model Regulation (#370) § 3H (Line of Credit; Insured Amount Due)

  “If a creditor has opened a line of credit for a debtor and, under Section 4A(5) or 4A(6) of the Consumer Credit Insurance Model Act, is charging for this line of credit rather than the amount of debt in the event of the death of the debtor, the insured amount due is the amount of the established...”

• NAIC Consumer Credit Insurance Model Regulation (#370) § 3C(2) (Termination of Group Consumer Credit Insurance Policy, monthly premium payment)

  “If a debtor is covered by a group consumer credit insurance policy providing for the payment of premiums to the insurer on a monthly basis, then the policy shall provide that, in the event of termination of the policy, termination notice shall be given to the insured debtor at least thirty (30)...”

• NAIC Consumer Credit Insurance Model Regulation (#370) § 3A (Multiple Plans of Insurance)

  “If a creditor makes available to the debtors more than one plan of consumer credit insurance, every debtor must be informed of each plan for which the debtor is eligible and of the premium or insurance charge for each.”

• NAIC Consumer Credit Insurance Model Regulation (#370) § 3B (Substitution)

  “When a creditor requires insurance as additional security for a debt, the debtor shall be given the option of furnishing the required amount of insurance through existing policies of insurance owned or controlled by the debtor or of procuring and furnishing the required coverage through any insurer...”

• NAIC Consumer Credit Insurance Model Regulation (#370) § 6B(3) (Effective date of coverage attributable to an advance)

  “For the exclusions listed in Section 6B(1) and (2) above, the effective date of coverage for each part of the insurance attributable to a different advance or a charge to the plan account is the date on which the advance or charge occurs.”

• NAIC Consumer Credit Insurance Model Regulation (#370) § 3C(1) (Termination of Group Consumer Credit Insurance Policy)

  “If a debtor is covered by a group consumer credit insurance policy providing for the payment of single premiums to the insurer, or any other premium payment method which prepays coverage beyond one month, then provision shall be made by the insurer that in the event of termination of the policy for...”

• NAIC Consumer Credit Insurance Model Regulation (#370) § 3G (Prepayment of Debt, claim in progress)

  “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.”

Practice this material

Questions about this source

More NAIC model laws sources

• Health Carrier Prescription Drug Benefit Management Model ActNAIC model law
• INDIVIDUAL MARKET HEALTH INSURANCE COVERAGE MODEL REGULATIONNAIC model law
• INDIVIDUAL MARKET HEALTH INSURANCE COVERAGE MODEL ACTNAIC model law
• Advertisements of Accident and Sickness Insurance Model RegulationNAIC model law
• Health Information Privacy Model ActNAIC model law
• Health Benefit Plan Network Access and Adequacy Model ActNAIC model law
• Health Carrier External Review Model ActNAIC model law
• MODEL HEALTH PLAN FOR UNINSURABLE INDIVIDUALS ACTNAIC model law