New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 3 - CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 11:2-3.2 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:
"Commissioner" means the Commissioner of the Department of Banking and Insurance.
"Credit accident and health insurance" means insurance on a debtor to provide indemnity for payments becoming due on a specific loan or other credit transaction while the debtor is disabled as defined in the policy.
"Credit life insurance" means insurance on the life of a debtor pursuant to or in connection with a specific loan or other credit transaction and may include disability benefits commonly described as "waiver of premiums" or "extended death benefit" if provided without a separate premium charge. This definition shall not prevent the inclusion in a life insurance contract of other disability benefits, but such other benefits shall be considered credit accident and health insurance for the purposes of this subchapter.
"Credit personal property insurance" means insurance covering direct or indirect damage or loss, by fire or other perils, including those of extended coverage, to the personal property of the debtor all or part of which is the security for the loan, which insurance shall be for an amount and term not to exceed the amount and term of the loan.
"Creditor" means the lender of money or vendor or lessor of goods, services, property, rights or privileges, for which payment is arranged through a credit transaction or any successor to the right, title or interest of any such lender, vendor or lessor, and an affiliate, associate or subsidiary of any of them or any director, officer or employee of any of them or any other person in any way associated with any of them.
"Debtor" means a borrower of money or a purchaser or lessee of goods, services, property, rights or privileges for which payment is arranged through a credit transaction.
"Department" means the Department of Banking and Insurance.
"Gross coverage" means a plan for credit insurance which insures the gross indebtedness of a loan.
"Indebtedness" means the total amount payable by a debtor to a creditor in connection with a loan or other credit transaction.
"Net coverage" means coverage for the amount sufficient to liquidate the remaining debt in a single payment, excluding unearned interest and finance charges.
"Open-end credit" means credit extended by a creditor under an agreement in which:
1. The creditor reasonably contemplates repeated transactions;
2. The creditor imposes a finance charge from time to time on an outstanding unpaid balance; and
3. The 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.
"Truncated credit life insurance and truncated credit accident and health insurance" means credit life insurance and credit accident and health insurance issued in connection with a fixed term debt where the term of insurance coverage is less than the term of the indebtedness, but does not include credit insurance which terminates on attainment of a specific age.