N.J. Admin. Code § 11:2-3.6

Current through Register Vol. 56, No. 9, May 6, 2024

Section 11:2-3.6 - Policy provisions, disclosure to debtors

(a) All credit life insurance and credit accident and health insurance shall be evidenced by an individual policy, or in the case of group insurance, by a certificate of group insurance which shall be delivered to the insured debtor at the time the indebtedness is incurred or within 30 days thereafter, except as provided in 11:2-3.1 3.

(b) Each individual policy or certificate of group insurance shall, in addition to other requirements of law, set forth the following information:

1. The name and home office address of the insurer;

2. The identity of the person or persons insured, by name or otherwise;

3. The amount and term of the coverage which, in the case of group insurance, may be by description rather than by stated amount and term;

4. The payment for insurance, in the case of an individual policy, or the rate or amount of payment, in the case of a group policy, if any, collected from the debtor separately in connection with credit life insurance and credit accident and health insurance;

5. The circumstances under which refunds of premiums or payments for insurance collected from debtors are payable pursuant to the provisions of 11:2-3.2 0; and

6. A description of the insurance coverage including any exceptions, limitations or restrictions, and in addition a statement that the benefits shall be paid to the creditor to reduce or extinguish any unpaid indebtedness to the creditor and, where the amount of insurance exceeds any such unpaid indebtedness, that any such excess shall be payable to a beneficiary, other than the creditor, named by the debtor, or to his estate.

(c) A payment for such insurance is deemed to have been collected from the debtor if an amount therefor is separately stated or is included in a total charge for insurance and other services.

(d) All individual credit accident and health insurance policies and certificates of group insurance shall provide that the payment of any premiums coming due during a period of disability will be waived, or, equivalently, that the disability benefit payable shall include the amount of premium due. Credit life insurance policies and certificates may provide for waiver of premiums during a period of disability at the option of the insurer.

N.J. Admin. Code § 11:2-3.6

Amended by R.1996 d.3, effective 1/2/1996.
See: 27 N.J.R. 3278(b), 28 N.J.R. 152(b).
Amended by R.1996 d.206, effective 5/20/1996.
See: 27 N.J.R. 3676(a), 28 N.J.R. 2621(a).
Added (d).