Restrictions based on age.
1. Except as otherwise provided in subsection 5, a policy of credit insurance may not contain any restriction based on age except to exclude from coverage a debtor who is 66 years of age or older at the time the indebtedness is incurred or who will attain the age of 70 on or before the date of maturity of the indebtedness.
2. Except as otherwise provided in subsection 5, any restriction based on age may be used only to determine initial eligibility for coverage. Except as otherwise provided in subsections 4 and 5, such a restriction may not be used as a basis for terminating existing coverage or denying claims.
3. This section does not preclude an insurer from challenging a fraudulent misstatement of age during the contestable period, if the information regarding age is contained in a written instrument signed by the debtor and a copy of the instrument is given to the debtor.
4. If a debtor exceeds the age for eligibility and has correctly stated his age in writing and a certificate or policy is issued to him in error, the insurer may within 60 days after the date of the indebtedness terminate coverage and refund the full premium paid by the debtor unless the debtor is disabled or involuntarily unemployed as defined in the terms of the policy or has died before the date of termination.
5. When insurance is provided with charges made to insured debtors on the basis of outstanding balance or without an identifiable charge made to insured debtors, the policy may provide for termination of insurance upon attainment by the debtor of a specified age not less than 70 years of age.
Last modified: February 27, 2006