Ala. Admin. Code r. 482-1-117-.03

Current through Register Vol. 43, No. 1, October 31, 2024

Section 482-1-117-.03 - Applicability And Scope

(1) All credit life insurance and credit disability insurance issued or sold in connection with credit transactions primarily for personal, family or household purposes shall be subject to the provisions of this chapter, except:

(a) Insurance sold as an isolated transaction on the part of the insurer and not related to an agreement or a plan for insuring debtors of the creditor.

(b) Insurance for which no identifiable charge is made to the debtor.

(2) It is acknowledged that various forms of decreasing term life insurance sold in connection with real estate loans, or other types of insurance where the rate is determined by age of the insured, could be construed as credit life insurance although the insurer did not intend that the insurance constitute credit life insurance. Therefore, the purpose and use of the insurance contract and all other factors tending to show the intent of the insurer in the issuance of the policy, will be taken into consideration in a determination of the applicability and scope of this chapter to the insurance products sold.

Author: Reyn Norman, Associate Counsel

Ala. Admin. Code r. 482-1-117-.03

New Rule: October 14, 1999; effective November 1, 1999. Filed for codification in the Alabama Administrative Code by the Department of Insurance on January 17, 2003, pursuant to the Code of Ala. 1975, § 27-7-43.

Statutory Authority:Code of Ala. 1975, § 27-2-17.