Fla. Admin. Code Ann. R. 69O-163.0055 - Limits of Coverage; Credit Life
(1)
The amount of Credit Life insurance for decreasing gross coverage shall be
within the limits in Section
627.679, F.S.
(2) If Credit Life Insurance coverage is
written on the actual net debt, the amount of credit life insurance shall not
exceed the amount of the loan, and the amount payable at the time of loss shall
not be less than the actual net debt, less any payments more than 2 months
overdue.
(3)
(a) If a premium is assessed to the debtor on
a monthly basis and is based on the actual net debt, then the amount of
insurance payable at the time of loss shall be the actual net debt.
(b) When the premium for Credit Life
insurance is computed on the basis of a balance which does not include accrued
past due interest, then the amount payable at the time of loss shall not be
less than the actual net debt less any accrued interest more than 2 months past
due.
(4) Credit Life
Insurance Coverage may, at the option of the insurer, be written for less than
the net debt by the following methods:
(a) The
amount of insurance may be the lesser of a stated level amount and the amount
determined by subsection (2) of this rule; or
(b) The amount of insurance may be a constant
percentage of the amount determined by subsection (2) of this
rule.
Notes
Rulemaking Authority 624.308(1), 627.678 FS. Law Implemented 624.307(1), 627.679, 627.681 FS.
New 2-11-03, Formerly 4-163.0055.
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