1998 Minnesota Statutes

     62B.05 Term of credit insurance. 

    The term of any credit life insurance, credit accident and 
 health insurance, or credit involuntary unemployment insurance 
 shall, subject to acceptance by the insurer, commence on the 
 date when the debtor becomes obligated to the creditor, except 
 that, where a group policy provides coverage with respect to 
 existing obligations, the insurance on a debtor with respect to 
 the indebtedness shall commence on the effective date of the 
 policy.  Where evidence of insurability is required and the 
 evidence is furnished more than 30 days after the date when the 
 debtor becomes obligated to the creditor, the term of the 
 insurance may commence on the date on which the insurance 
 company determines the evidence to be satisfactory, and in that 
 event there shall be an appropriate refund or adjustment of any 
 charge to the debtor for insurance.  The term of the insurance 
 shall not extend more than 15 days beyond the scheduled maturity 
 date of the indebtedness except when extended without additional 
 cost to the debtor. 

    If an indebtedness is prepaid in full before its scheduled 
 maturity, except by performance of the insurer's obligation 
 under the policy, the insurance shall be deemed canceled and a 
 refund shall be paid or credited as provided in section 62B.08.  
 Upon prepayment in full, the creditor shall make the refund of 
 unearned premium, unless the credit insurance was originated by 
 a third party, in which case the creditor shall promptly notify 
 the third party who shall make the refund. 

    HIST: Ex1967 c 2 s 5; 1977 c 382 s 4; 1978 c 641 s 1; 1Sp1985 
 c 10 s 61; 1986 c 455 s 87; 1993 c 343 s 12