Text: HSB00640 Text: HSB00642 Text: HSB00600 - HSB00699 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 507B.5A SINGLE PREMIUM CREDIT 1 2 INSURANCE. 1 3 1. An insurer offering or providing credit insurance in 1 4 this state shall not offer, deliver, issue for delivery, cause 1 5 to be delivered, or sell any form of single premium credit 1 6 insurance in connection with a mortgage transaction in this 1 7 state. 1 8 2. For purposes of this section, "single premium credit 1 9 insurance" means any credit insurance where the full premium 1 10 is charged to the consumer as a whole sum at or near the 1 11 inception of coverage whether that charge is made by the 1 12 creditor or by the insurer. 1 13 3. This section does not preclude an insurer from offering 1 14 alternatives to single premium credit insurance when credit 1 15 insurance is required in connection with any mortgage 1 16 transaction in this state. However, those alternatives must 1 17 allow for payment of premium on a monthly basis. 1 18 Sec. 2. Section 509.17, subsection 3, Code 2001, is 1 19 amended to read as follows: 1 20 3. The commissioner shall, after a public hearing, approve 1 21 a reasonable charge or premium for credit accident and health 1 22 insurance and for credit life insurance as the commissioner 1 23 deems appropriate and necessary for the implementation of this 1 24 section. The commissioner shall not approve rates that are 1 25 expected to produce a loss ratio of less than fifty percent. 1 26 EXPLANATION 1 27 This bill deals with credit insurance issues. 1 28 The bill adds new Code section 507B.5A, which prohibits the 1 29 offering or sale of single premium credit insurance in 1 30 connection with a mortgage transaction. An insurer may offer 1 31 alternatives that provide for payment of a monthly premium, if 1 32 credit insurance is required. 1 33 The bill amends Code section 509.17 regarding the 1 34 guidelines for rates for credit life insurance and credit 1 35 accident and health insurance. The bill provides that the 2 1 rates approved by the commissioner of insurance following a 2 2 public hearing shall not be at a level expected to produce a 2 3 loss ratio of less than 50 percent. 2 4 LSB 5303DP 79 2 5 jj/cf/24.1
Text: HSB00640 Text: HSB00642 Text: HSB00600 - HSB00699 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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