Indiana Administrative Code › Title 760 - DEPARTMENT OF INSURANCE › Article 1 - GENERAL PROVISIONS › Rule 5.1 - Credit Life Insurance; Credit Accident and Health Insurance › Section 5.1-2 - Definitions

Current through July 10, 2024
Authority: IC
				  27-1-3-7;
				  IC
				  27-8-4-12
Affected: IC
				  24-4.5-4-102;
				  IC
				  27-1-23-1
Sec. 2.
(a) The
				following definitions apply throughout this rule:
(1) "Affiliate" has the meaning set forth in
				IC
				27-1-23-1.
(2) "Closed-end credit" means a credit
				transaction that does not meet the definition of open-end credit.
(3) "Compensation" means:
(A) commissions;
(B) dividends;
(C) retrospective rate credits;
(D) service fees;
(E) expense allowances or
				reimbursements;
(F)
				gifts;
(G) furnishing of equipment,
				facilities, goods, or services; or
(H) any other form of remuneration resulting
				directly from the sale of consumer credit insurance.
(4) "Consumer credit insurance" is a general
				term used to refer to any or all of credit life insurance and credit accident
				and health insurance.
(5) "Control"
				has the meaning set forth in IC
				27-1-23-1.
(6) "Evidence of individual insurability"
				means a statement furnished by the debtor, as a condition of insurance becoming
				effective, that relates specifically to the health status or to the health or
				medical history of the debtor.
(7)
				"Gross debt" means the sum of the remaining payments owed to the creditor by
				the debtor.
(8) "Identifiable
				insurance charge" means a charge for a type of consumer credit insurance that
				is made to debtors having such insurance and not made to debtors not having
				such insurance; it includes a charge for insurance that is disclosed in the
				credit or other instrument furnished to the debtor that sets out the financial
				elements of the credit transaction and any difference in the finance, interest,
				service, or other similar charge made to debtors who are in like circumstances
				except for the insured or noninsured status of the debtor.
(9) "Loss ratio" means incurred claims
				divided by the sum of earned premiums and imputed interest earned on unearned
				premiums.
(10) "Net debt" means the
				amount necessary to liquidate the remaining debt in a single lump sum payment,
				excluding all unearned interest and other unearned finance charges.
(11) "Open-end credit" means credit extended
				by a creditor under an agreement in which the:
(A) creditor reasonably contemplates repeated
				transactions;
(B) creditor imposes
				a finance charge from time to time on an outstanding unpaid balance;
				and
(C) amount of credit that may
				be extended to the debtor during the term of the agreement (up to any limit set
				by the creditor) is generally made available to the extent that any outstanding
				balance is repaid.
(12)
				"Person" has the meaning set forth in IC
				27-1-23-1.
(13) "Preexisting condition" means any
				condition for which the insured debtor received medical advice, consultation,
				or treatment within six (6) months before the effective date of the coverage
				and from which the insured debtor becomes disabled within six (6) months after
				the effective date of this coverage.