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1994 SESSION

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HB 1368 Credit involuntary unemployment insurance; disclosure requirements.

Introduced by: William P. Robinson, Jr. | all patrons    ...    notes | add to my profiles

SUMMARY:

Credit involuntary unemployment insurance; disclosure requirements. Modifies provisions governing disclosure that must be given to debtors in connection with the solicitation and sale of credit involuntary unemployment insurance.

Currently, creditors offering debtors such insurance must disclose (i) when the insurance is elective, that the purchase of such insurance is not required and is not a factor in extending credit (ii) when such insurance is mandatory, that the debtor may obtain such coverage from other insurers (iii) information about all plans of such insurance for which the debtor is eligible and (iv) information about the total cost of credit, with and without such insurance, whenever a single premium method of payment for such insurance is proposed.

This bill permits the consolidation of such disclosures with similar disclosures required for credit accident and sickness insurance and credit life insurance whenever all products are offered concurrently to a debtor in connection with a single credit transaction.

The bill exempts from the disclosure requirements described above credit involuntary unemployment insurance insuring "open end monthly outstanding balance credit transactions" if certain criteria, including the following, are met: (i) the insurance is offered after the loan or credit transaction it will insure has been approved by the creditor and has been effective for at least 25 days (ii) the solicitation for the insurance is by mail or telephone (iii) only one plan of such insurance is offered (iv) written confirmation of the coverage is offered the debtor within 30 days of the effective date of such coverage and (v) the debtor may cancel the coverage within 30 days of receiving such confirmation, and obtain a refund of any premium paid.

The bill further exempts from the disclosure requirements described above coverage for open end credit transactions (if not already exempted by the "open end monthly outstanding balance credit transactions" exemption) where such coverage is (i) solicited by mail, telephone or brochure and (ii) the insurer is offering only one plan of such insurance and where the following information is disclosed: (i) the name and address of the insurer and creditor and (ii) a description of the coverage offered, including the amount of coverage, the premium rate for each plan of insurance offered, and a description of any exceptions, limitations or restrictions applicable to such coverage.


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