Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 60 - INSURANCE POLICIES (ORS CHAPTER 743) › Section 836-060-0060 - Disclosure

Current through Register Vol. 63, No. 7, July 1, 2024
(1) When a premium
			 or identifiable charge is payable by a debtor for credit insurance coverage
			 offered by a creditor, disclosure shall be made to the principal debtor, at the
			 time the insurance is applied for, of the optional nature of the coverage, the
			 eligibility requirements, and the policy limitations and exclusions. These
			 disclosures may be the federal Truth-in-Lending disclosure accompanied by a
			 notice of proposed insurance or the insurance policy or certificate. The
			 disclosure may be made pursuant to the loan disclaimer requirements of the
			 federal Truth-in-Lending law or regulations adopted thereunder, a similar
			 disclosure requirement that is audited by an agency of a state or the federal
			 government, accompanied by a notice of proposed insurance or the insurance
			 policy or certificate. If disclosure is not thus made, disclosure must be given
			 in the form and wording of the disclosure form set forth in
Exhibit
			 1
to this rule. The insurer may modify the disclosure form required
			 under this section as appropriate for the loan involved. Before using the
			 modified disclosure form, the insurer must obtain approval of the form from the
			 Director.
(2) When the term of a
			 loan is not the same as the term of the insurance, the policy or certificate
			 must disclose prominently, in bold letters, the limit to the coverage.
EXHIBIT 1(OAR 836-060-0060)
DISCLOSURE FORM OPTIONAL CREDIT INSURANCE
Credit life insurance and credit health insurance provide
				protection for both the buyer and seller.
You are entitled to a copy of the policy or certificate of
				insurance within thirty days after credit is extended.
You ARE NOT required to buy credit life insurance or credit
				health insurance from any particular insurance company or agent. You may use
				existing policies if insurance is required as additional security.
If you buy credit life insurance, the proceeds will be used to
				reduce or pay off your unpaid loan or indebtedness when you die. Any insurance
				proceeds in excess of the amount required to pay off the loan will be paid to
				your beneficiary or estate.
If you buy credit health insurance, the proceeds will be used
				to reduce or pay off your unpaid loan or indebtedness if you become
				incapacitated.
READ your policy or certificate CAREFULLY for what the policy
				DOES NOT cover. For example: Some policies do not cover the total loan amount
				or the entire period of coverage. Some policies do not pay disability benefits
				unless you are disabled for 14 or 30 days or if you have a preexisting
				condition. Some policies will not provide coverage if you are age 66 or more or
				when you reach 66. See the policy for details on these matters.
You may not be eligible for credit health insurance unless you
				now work at least thirty hours per week, unless unemployed solely due to
				seasonal lay-off.
By initialing below, the customer, debtor or lessee
				acknowledges acceptance or refusal of credit life or credit health
				insurance.
ACCEPTS CREDIT LIFE INSURANCE
DECLINES CREDIT LIFE INSURANCE
ACCEPTS CREDIT HEALTH INSURANCE
DECLINES CREDIT HEALTH INSURANCE
Stat. Auth.: ORS 731, 742, 743 & 746
Stats. Implemented: ORS
				  743.015,
				  743.376,
				  743.377 &
				  746.240