Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES › Subchapter FF - CREDIT LIFE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Division 2 - APPLICATIONS AND POLICIES › Section 3.5103 - Policy Provisions

Current through Reg. 49, No. 28; July 12, 2024
Each individual policy or group certificate of credit
						life insurance or credit accident and health insurance delivered or issued for
						delivery in this state must, in addition to the other requirements of law, set
						forth:
(1) the name and home office
					 mailing address of the insurer, and on group certificates of insurance, an
					 identification of the master policy;
(2) the name and age or birth date of the
					 insured debtor (or debtors, if joint life);
(3) the full amount of premium or the total
					 identifiable insurance charge, if any, to the debtor, stated separately for
					 credit life insurance and for credit accident and health insurance; however, if
					 the indebtedness is an open-end transaction, there must be set forth,
					 separately for credit life and credit accident and health insurance, the rate
					 of insurance charge or payment per unit of coverage and how each charge is
					 derived;
(4) the amount of
					 insurance coverage;
(5) the
					 effective date of insurance, and the termination date of insurance. The
					 termination date may not extend more than 15 days beyond the scheduled maturity
					 date of the indebtedness except when extended without additional cost to the
					 debtor. If the indebtedness is an open-end transaction, in lieu of the
					 termination date, the conditions of termination must be set forth;
(6) a description of the coverage;
(7) any and all exceptions, limitations, and
					 restrictions to the coverage;
(8) a
					 statement that the benefits, to the extent necessary to extinguish the unpaid
					 amount of the indebtedness, will be paid to the creditor as first beneficiary,
					 and will be applied by the creditor to reduce or extinguish such indebtedness;
					 and a statement that wherever the insurance benefits may exceed the amount
					 necessary to extinguish the indebtedness, any such excess must be paid by
					 separate check or draft of the insurer to the insured debtor, if then living;
					 otherwise, to a second beneficiary named by the debtor, or a second insured
					 debtor or, in the absence of such designation, to the surviving spouse or to
					 the debtor's estate;
(9) a
					 statement indicating that upon discharge of the indebtedness, the insurance
					 will be terminated, but without prejudice to any claim originating prior to
					 such termination, and that in all cases of termination prior to scheduled
					 maturity, a refund of any unearned amount of premium paid by or charged to the
					 debtor for insurance will be made in accordance with the appropriate formula
					 set forth in §
											3.5901
					 of this title (relating to Refund of Unearned Premiums) and §
											3.5906
					 of this title (relating to Treatment of Partial Months). Such refund must be
					 paid or credited to the account of the debtor, or paid to the second
					 beneficiary, if the debtor is not living. No such refund is required if the
					 total amount thereof is less than $3.00. (For insurance coverage subject to
					 Finance Code Chapters 341, 342, and 345 - 348, a refund must be made, except
					 that no cash refund will be required if the amount thereof is less than
					 $1.00.)