1998 Minnesota Statutes

     62B.06 Provisions of policies and certificates of 
  insurance; disclosure to debtors. 

    Subdivision 1.  All credit life insurance, credit accident 
 and health insurance, and credit involuntary unemployment 
 insurance shall be evidenced by an individual policy, memorandum 
 copy, or in the case of group insurance by a certificate of 
 insurance, which shall be delivered to the debtor. 

    Subd. 2.  Each individual policy or group certificate of 
 credit life insurance, credit accident and health insurance, or 
 credit involuntary unemployment insurance, shall, in addition to 
 other requirements of law, set forth the name and home office 
 address of the insurer, the name or names of the debtor or in 
 the case of a certificate under a group policy, the identity by 
 name or otherwise of the debtor, the rate or amount of payment, 
 if any, by the debtor separately for credit life insurance, 
 credit accident and health insurance, and credit involuntary 
 unemployment insurance, a description of the amount, term and 
 coverage including any exceptions, limitations and restrictions, 
 and shall state that the benefits shall be paid to the creditor 
 to reduce or extinguish the unpaid indebtedness and, wherever 
 the amount of insurance may exceed the unpaid indebtedness, that 
 any such excess shall be payable to the debtor, if living, 
 otherwise to a beneficiary, other than the creditor, named by 
 the debtor, otherwise to the debtor's estate.  No individual or 
 group policy of credit accident and health insurance or credit 
 involuntary unemployment insurance issued, amended, renewed, or 
 delivered in this state on or after January 1, 1976 shall 
 contain any provision offsetting, or in any other manner 
 reducing any benefit under the policy by the amount of, or in 
 proportion to, any increase in disability or other benefits 
 received or receivable under the federal Social Security Act, as 
 amended subsequent to the date of commencement of such benefit.  

    Subd. 3.  The individual policy or group certificate of 
 insurance shall be delivered to the insured debtor at the time 
 the indebtedness is incurred except as hereinafter provided.  

    Subd. 4.  If the individual policy or group certificate of 
 insurance is not delivered to the debtor at the time the 
 indebtedness is incurred, 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, if any, separately for credit life 
 insurance, credit accident and health insurance, and credit 
 involuntary unemployment insurance, the amount, term and a brief 
 description of the coverage provided, shall be delivered to the 
 debtor at the time the indebtedness is incurred.  The copy of 
 the application for, or notice of proposed insurance, shall also 
 refer exclusively to insurance coverage, and shall be separate 
 and apart from the loan, sale or other credit statement of 
 account, instrument or agreement, unless the information 
 required by this subdivision is prominently set forth therein.  
 Upon acceptance of the insurance by the insurer and within 30 
 days of the date on which the indebtedness is incurred, 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 shall state that upon acceptance by 
 the insurer, the insurance shall become effective as provided in 
 section 62B.05.  If an application for a policy or a notice of 
 proposed insurance is not delivered at the time the indebtedness 
 is incurred as required by this subdivision, the creditor shall 
 assume all of the liabilities under such insurance until an 
 insurer accepts the risk.  

    Subd. 5.  If the insurer named in either the application or 
 notice of proposed insurance does not accept the risk, then the 
 debtor shall 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 
 application or notice of proposed insurance an appropriate 
 refund shall be made.  

    HIST: Ex1967 c 2 s 6; 1975 c 323 s 2; 1986 c 444; 1993 c 343 s 
 13-15