debtors. 1. Before the debtor elects to purchase consumer credit insurance in connection with a credit transaction, the following must be disclosed to the debtor in writing: a. That the purchase of consumer credit insurance is optional and not a condition of obtaining credit approval. b. If more than one kind of consumer credit insurance is being made available to the debtor, whether the debtor can purchase each kind separately or the multiple coverages only as a package. c. The conditions of eligibility, if any. d. That if the consumer has other insurance that covers the risk, the consumer may not want or need credit insurance. e. That within the first thirty days after receiving the individual policy or group certificate, the debtor may cancel the coverage and have all premiums paid by the debtor refunded or credited. Thereafter, the debtor may cancel the policy at any time during the term of the loan and receive a refund of any of the unearned premium. However, only in those instances when insurance is a requirement for the extension of credit, the debtor may be required to offer evidence of alternative insurance acceptable to the creditor at the time of cancellation. f. A brief description of the coverage, including a description of the amount, the term, any exceptions, limitations, and exclusions, the insured event, any waiting or elimination period, any deductible, any applicable waiver of premium provision, to whom the benefits would be paid, and the premium rate for each coverage or for all coverages in a package. g. That if the premium or insurance charge is financed, it will be subject to finance charges at the rate applicable to the credit transaction. 2. The disclosures in subsection 1 must be provided in the following manner: a. In connection with consumer credit insurance offered contemporaneously with the extension of credit or offered through direct mail advertisements, disclosure must be made in writing and presented to the consumer in a clear and conspicuous manner. b. In conjunction with the offer of credit insurance subsequent to the extension of credit by other than direct mail advertisements, disclosure may be provided orally so long as written disclosures are provided to the debtor no later than the earlier of: (1) Ten days after the election of coverage; or (2) The date any other written material is provided to the debtor. 3. All consumer credit insurance must be evidenced by an individual policy or a group certificate of insurance which must be delivered to the debtor. 4. The individual policy or group certificate must, in addition to other requirements of law, set forth the following: a. The name and home-office address of the insurer; b. The name or names of the debtor or debtors or in the case of a group certificate, the identity by name or otherwise of the debtor or debtors; c. The premium or amount of payment by the debtor separately for each kind of coverage or for all coverages in a package, except that for open -end loans, the premium rate and the balance to which the premium rate applies; d. A full description of the coverage or coverages, including the amount and term thereof, and any exceptions, limitations, and exclusions; e. A statement that the benefits will be paid to the creditor to reduce or extinguish the unpaid debt or to repair or replace the property and, whenever the amount of insurance benefit exceeds the unpaid debt that any excess is payable to a beneficiary, other than the creditor, named by the debtor or to the debtor's estate; and f. If the scheduled term of insurance is less than the scheduled term of the credit transaction, a statement to that effect on the face of the individual policy or group certificate in not less than ten-point bold-faced type. 5. Unless the individual policy or group certificate of insurance is delivered to the debtor at the time the debt is incurred, or at such other time that the debtor elects to purchase coverage, a copy of the application for the policy or a notice of proposed insurance, signed by the debtor and setting forth the name and home -office address of the insurer, the name or names of the debtor, the premium or amount of payment by the debtor for the insurance and the amount, term, and a brief description of the coverage provided, must be delivered to the debtor at the time the debt is incurred or the election to purchase coverage is made. The copy of the application or notice of proposed insurance must also refer exclusively to insurance coverage, and must be separate and apart from the loan, sale, or other credit statement of account, instrument, or agreement, unless the information required by this subsection is prominently set forth in that material. Upon acceptance of the insurance by the insurer and within thirty days of the date upon which the debt is incurred or the election to purchase coverage is made, the insurer shall cause the individual policy or group certificate of insurance to be delivered to the debtor. The application or notice of proposed insurance must state that upon acceptance by the insurer, the insurance becomes effective as provided in section 26.1-37-06. 6. The application, notice of proposed insurance, or certificate may be used to fulfill all of the requirements of subsections 1 and 4 if it contains all of the information required by those subsections. 7. The debtor has thirty days from the date the debtor receives either the individual policy or the group certificate to review the coverage purchased. At any time within the thirty-day period, the debtor may contact the creditor or insurer issuing the policy or certificate and request that the coverage be canceled. The individual policy or group certificate may require the request to be in writing or that the policy or certificate be returned to the insurer, or both. The debtor must, within thirty days of the request, receive a full refund or credit of all premiums or insurance charges paid by the debtor. 8. If the named insurer does not accept the risk, the debtor must receive a policy or certificate of insurance setting forth the name and home -office address of the substituted insurer and the amount of the premium to be charged, and if the amount of premium is less than that set forth in the notice of proposed insurance an appropriate refund must be made within thirty days. If no insurer accepts the risk, then all premiums paid must be refunded or credited within thirty days of application to the person entitled thereto. 9. For the purpose of subsection 5, an individual policy or group certificate delivered in conjunction with an open -end consumer credit agreement or any consumer credit insurance requested by the debtor after the date of the debt must be deemed to be delivered at the time the debt is incurred or election to purchase coverage is made if the delivery occurs within thirty days of the date the insurance is effective. 10. An individual policy or group certificate delivered in conjunction with an open -end credit agreement continues from its effective date through the term of the agreement unless the individual policy or group certificate is terminated in accordance with its terms at an earlier date. 11. Credit property insurance coverage, at a minimum, must include the coverages in the standard fire policy with coverage attachment and extended coverage endorsement and must cover a substantial risk of loss of or damage to the property related to the credit transaction.
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