Amounts of credit life insurance.
1. Except as otherwise provided in subsections 2 and 3, the amount of credit life insurance must not exceed the total amount repayable under the contract of indebtedness and, where an indebtedness is repayable in substantially equal installments, the amount of insurance must not exceed the scheduled or actual amount of unpaid indebtedness, whichever is greater.
2. Life insurance for credit transactions not providing for amortization of the indebtedness may be issued up to the amount of the indebtedness or a level term plan of insurance may be issued for a term not to exceed the actual term of the indebtedness.
3. Insurance on commitments for an educational credit or agricultural transaction may be issued for the amount of the commitment that has not been advanced by the creditor.
Last modified: February 27, 2006