Text: SSB03118 Text: SSB03120 Text: SSB03100 - SSB03199 Text: SSB 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: SSB03118 Text: SSB03120 Text: SSB03100 - SSB03199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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