5 Del. Admin. Code § 2201-5.0

Current through Reigster Vol. 28, No. 6, December 1, 2024

Section 2201-5.0 - Insurance

5.1 Credit Life and Health Insurance

5.1.1 A licensee may offer credit life and health insurance to qualified borrowers. Such insurance transactions shall conform to Title 18 of the Delaware Code and all applicable Insurance Commissioner Regulations.

5.1.2 Every licensee offering credit life and health insurance whose charges do not conform to those authorized by Title 18 of the Delaware Code shall maintain in each office a copy of a submission to the Insurance Commissioner requesting the non-conforming charges and the Insurance Commissioner's approval of those charges.

5.1.3 Credit life insurance refunds shall be calculated as of the date of death except as permitted by 18 Del.C. § 3705 (b)(4).

5.1.4 Credit health insurance payments received by a licensee shall be applied to the account for the period the payment actually covers regardless of the date of receipt. Additional interest charges shall not accrue if payment is received after the payment due date.

5.2 A licensee may offer, but not require, only such other insurance products as the Commissioner may, upon written approval, permit.

5.3 Any licensee may require proof of insurance coverage for any loan secured by a motor vehicle, real estate, or other collateral. The borrower has the right to submit any existing policy(s) naming the licensee as beneficiary, provided such policy is acceptable to the licensee as to coverage, term and carrier. Upon notification to the licensee of cancellation of any policy, the licensee may place coverage to protect the licensee's interest. The borrower shall be informed of such placement and any amount expended shall be due and payable by the borrower before a loan may be satisfied. A licensee may, if requested by the borrower, place such insurance coverage as is necessary to protect the licensee's interest at the inception of the loan.

5.4 Any insurance authorized by this regulation, other than the insurance coverage authorized by § 5.3 of this regulation, must be specifically requested by the borrower in writing. This request must be attached to, or part of, the loan application.

5 Del. Admin. Code § 2201-5.0

18 DE Reg. 472 (12/1/2014) (Final)