Administrative Rules of Montana › Department 2 - ADMINISTRATION › Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS › Subchapter 2.59.3 - Consumer Loan Licensees › Rule 2.59.303 - CREDIT INSURANCE

Current through Register Vol. 13, July 5, 2024
(1) A consumer loan
				licensee may not sell, solicit, or negotiate insurance or act as an insurance
				producer or insurance agency in this state unless licensed under Title 33,
				chapter 17, MCA. A consumer loan licensee holding an insurance producer or
				insurance agency license shall conspicuously display the insurance license in
				its main consumer loan office and shall comply with all applicable provisions
				of the Montana Insurance Code, Title 33, MCA.
(2) A licensee may not require any borrower
				or prospective borrower to purchase or contract for credit life insurance,
				credit disability insurance, or loss of income insurance as a condition
				precedent to granting any loan.
(3) A licensee may advise borrowers or
				prospective borrowers or advertise generally and publicly that credit life
				insurance, credit disability insurance, and loss of income insurance are
				available at additional cost to the borrower on loans meeting the requirements
				of (4).
(4) A licensee may not
				place credit life insurance, credit disability insurance, or loss of income
				insurance on any loan of $300 or less in principal amount exclusive of charges
				for insurance premiums.
(5) The
				amount and term of credit life insurance, credit disability insurance, or loss
				of income insurance placed by a licensee must conform to the provisions of
				33-21-202 and
				33-21-203, MCA.
(6) The individual insurance policy, the
				certificate of group insurance, the copy of the application for insurance, or
				the notice of proposed insurance, must be delivered to the borrower at the time
				the indebtedness is incurred and statements concerning the coverage provided
				must comply with
				33-21-204, MCA.
(7) A licensee must have on file for each
				credit life insurance, credit disability insurance, and loss of income
				insurance transaction a signed statement from the borrower that procurement of
				the insurance was not made a condition precedent to the granting of the loan.
				The statement may be a part of the loan statement, certificate of group
				insurance, or application for insurance, if the document is retained in the
				borrower's loan file for the two-year period required by
				32-5-307, MCA. If a separate
				signed statement is used, the statement must be retained in the borrower's loan
				file for the same period.
(8)
				Refunds of unearned premiums for credit life insurance, credit disability
				insurance, and loss of income insurance must be made in accordance with the
				Montana Insurance Code (
				33-21-206, MCA).
(9) A licensee shall enter on each borrower's
				loan account record the amount of credit life, credit disability, or loss of
				income insurance premium charged in connection with the loan.
(10) Before any credit life insurance, credit
				disability insurance, or loss of income insurance premium is placed by a
				consumer loan licensee on any loan contract, the licensee must file with the
				department a statement containing the following information:
(a) the name and home address of the insurer
				or insurers with whom licensee intends to place such insurance;
(b) the rate of charge for premiums on the
				insurance to be collected from the borrower, expressed in terms of dollars and
				cents per month (or per year) per one hundred dollars of original balance of
				the loan;
(c) borrower eligibility
				criteria for credit life insurance, credit disability insurance, and loss of
				income insurance; and
(d) the
				basis or schedule upon which refunds to borrowers of unearned premiums are to
				be computed consistent with the refund formula filed with and approved by the
				Commissioner of Insurance under
				33-21-206(2),
				MCA.