Amounts of credit disability insurance or involuntary unemployment insurance.
1. Except as otherwise provided in subsection 2, the total amount of periodic indemnity payable pursuant to a policy of credit disability insurance in the event of disability, as defined in the policy, or pursuant to a policy of involuntary unemployment insurance in the event of involuntary unemployment as defined in the policy, must not exceed the aggregate of the periodic scheduled unpaid installments of the indebtedness, and the amount of each periodic indemnity payment must not exceed the original indebtedness divided by the number of periodic installments.
2. Credit disability insurance or involuntary unemployment insurance may be written in connection with a commitment for an educational credit transaction if the monthly indemnity does not exceed the amount that results when the total commitment is divided by the number of months in the term of the transaction.
Last modified: February 27, 2006