Title 58 — INSURANCE

The purpose of this chapter is to promote the public welfare by regulating credit life insurance, credit health insurance, credit unemployment insurance, and credit property including group personal property coverages authorized through credit cards. Nothing in this chapter is in…

Where evidence of insurability is required and such evidence is furnished more than thirty days after the date when the debtor becomes obligated to the creditor, the term of credit life insurance or credit health insurance may commence on the date on which the insurance company d…

The term of credit life insurance or credit health insurance shall not extend more than fifteen days beyond the scheduled maturity date of the indebtedness except when extended without additional cost to the debtor. If the indebtedness is discharged due to renewal or refinancing …

Any insurer may revise its schedules of premium rates from time to time, and shall file such revised schedules with the director. Source: SL 1966, ch 111 , ch 27, § 8 (1).

No insurer shall issue any credit life insurance policy or credit health insurance policy for which the premium rate exceeds that determined by the schedules of such insurer as then on file with the director. Violation of this section is a Class 2 misdemeanor. Source: SL 1966, ch…

The amount charged to a debtor for any credit life or credit health insurance shall not exceed the premiums charged by the insurer, as computed at the time the charge to the debtor is determined. Violation of this section is a Class 2 misdemeanor. Source: SL 1966, ch 111 , ch 27,…

Each individual policy, or group certificate shall provide that in the event of termination of the insurance prior to the scheduled maturity date of the indebtedness, any refund of an amount paid by the debtor for insurance shall be paid or credited promptly to the person entitle…

If a creditor requires a debtor to make any payment for credit life insurance or credit health insurance and an individual policy or group certificate of insurance is not issued, the creditor shall immediately give written notice to such debtor and shall promptly make an appropri…

All policies of credit life insurance and credit health insurance shall be delivered or issued for delivery in this state only by an insurer authorized to do an insurance business therein, and shall be issued only through holders of licenses or authorizations issued by the direct…

All credit life insurance and credit health insurance sold shall be evidenced by an individual policy, or in the case of group insurance by a certificate of insurance, which individual policy, or group certificate of insurance shall be delivered to the debtor. Source: SL 1966, ch…

Each individual policy or group certificate of credit life insurance, or credit health insurance shall, in addition to other requirements of law, set forth the name and home office address of the insurer, the name or names of the debtor or in the case of a certificate under a gro…

Terms used in this chapter mean: (1) "Credit health insurance," insurance on a debtor to provide indemnity for payments becoming due on a specific loan, lease, or other credit transaction while the debtor is disabled as defined in the policy; (2) "Credit life insurance," insuranc…

Each individual policy or group certificate of credit life insurance or credit health insurance shall be delivered to the insured debtor at the time the indebtedness is incurred except as provided in §§ 58-19-21 to 58-19-23 , inclusive. Source: SL 1966, ch 111 , ch 27, § 6 (3).

If said individual policy or group certificate of insurance is not delivered to the debtor at the time the indebtedness is incurred, a copy of the application for such policy or a notice of proposed insurance, signed by the debtor and setting forth the name and home office addres…

Upon acceptance of the insurance by the insurer and within thirty days of the date upon which the indebtedness is incurred, the insurer shall cause the individual policy or group certificate of insurance to be delivered to the debtor. Source: SL 1966, ch 111 , ch 27, § 6 (4).

If the named insurer does not accept the risk, then and in such event the debtor shall receive a policy or certificate of insurance setting forth the name and home office address of the substituted insurer and the amount of the premium to be charged, and if the amount of premium …

All policies, certificates of insurance, notices of proposed insurance, applications for insurance, endorsements, and riders delivered or issued for delivery in this state and the schedules of premium rates pertaining thereto shall be filed with the director. Source: SL 1966, ch …

If a group policy of credit life insurance or credit health insurance has been delivered in this state before July 1, 1966, or has been or is delivered in another state before or after said date, the insurer shall be required to file only the group certificate and notice of propo…

The director shall within thirty days after the filing of any such policies, certificates of insurance, notices of proposed insurance, applications for insurance, endorsements, and riders, disapprove any such form if the premium rates charged or to be charged are excessive in rel…

If the director notifies the insurer that the form is disapproved, it is unlawful thereafter for such insurer to issue or use such form. In such notice, the director shall specify the reason for his disapproval and state that a hearing will be granted within twenty days after req…

The director may, at any time after a hearing held not less than twenty days after written notice to the insurer, withdraw his approval of any such form on any ground set forth in §

It is not lawful for the insurer to issue such forms or use them after the effective date of such withdrawal. Source: SL 1966, ch 111 , ch 27, § 7 (5).

All life insurance and all health insurance in connection with loans or other credit transactions shall be subject to the provisions of this chapter, except such insurance in connection with a loan or other credit transaction of more than ten years' duration; nor shall insurance …

Any order or final determination of the director under the provisions of §§ 58-19-24 to 58-19-29 , inclusive, shall be subject to judicial review. Source: SL 1966, ch 111 , ch 27, § 7 (7).

All claims shall be promptly reported to the insurer or its designated claim representative, and the insurer shall maintain adequate claim files. All claims shall be settled as soon as possible and in accordance with the terms of the insurance contract. Source: SL 1966, ch 111 , …

No plan or arrangement shall be used whereby any person, firm or corporation other than the insurer or its designated claim representative shall be authorized to settle or adjust claims. The creditor shall not be designated as claim representative for the insurer in adjusting cla…

All claims shall be paid either by draft drawn upon the insurer or by check of the insurer to the order of the claimant to whom payment of the claim is due pursuant to the policy provisions, or upon direction of such claimant to one specified. Source: SL 1966, ch 111 , ch 27, § 1…

The director may promulgate rules pursuant to chapter 1-26 as deemed appropriate for the supervision of this chapter. The rules may cover any type of credit insurance including credit life, credit health, credit unemployment, and credit property insurance, including guaranteed au…

Whenever the director finds that there has been a violation of this chapter or any rules or regulations issued pursuant thereto, and after written notice thereof and hearing given to the insurer or other person authorized or licensed by the director, he shall set forth the detail…

The director may revoke or suspend the license or certificate of authority of the person, firm, or corporation guilty of violation of an order of the commissioner after it has become final, and while such order is in effect. Such order for suspension or revocation shall be upon n…

In addition to any other penalty provided by law, any person, firm, or corporation which violates an order of the director after it has become final, and while such order is in effect, shall, upon proof thereof to the satisfaction of the court, forfeit and pay to the State of Sou…

This chapter may be cited as "The Model Act for the Regulation of Credit Life Insurance and Credit Health Insurance." Source: SL 1966, ch 111 , ch 27, § 2 (1).

Any credit unemployment insurance sold in connection with loans or other credit transactions is subject to the provisions of this chapter to the extent such provisions are not inconsistent with the specific provisions of §§ 58-19-40 to 58-19-46 , inclusive. Source: SL 1987, ch 38…

Credit life insurance and credit health insurance shall be issued only in the following forms: (1) Individual policies of life insurance issued to debtors on the term plan; (2) Individual policies of health insurance issued to debtors on a term plan or disability benefit provisio…

Credit unemployment insurance may be offered but in no event may be required by the lender in consumer transactions. This shall be clearly and conspicuously disclosed to the consumer in the loan agreement. Source: SL 1987, ch 380 , § 2.

Credit unemployment insurance shall provide coverage beginning with the first day of unemployment. However, the policy may include a waiting period before the consumer may file a claim. Source: SL 1987, ch 380 , § 3.

Credit unemployment insurance shall be sold separately and shall be separately priced from any other insurance offered or sold at the same time unless credit unemployment insurance is included as part of an insurance offering by a credit card issuer. However, credit unemployment …

All credit unemployment insurance policies, certificates of insurance, notices of proposed insurance, applications for insurance, endorsements, and riders delivered or issued for delivery in this state and the schedules of premium rates pertaining thereto shall be filed with the …

Within thirty days after the filing of any credit unemployment insurance policy, certificate of insurance, notice of proposed insurance, application for insurance, endorsement, or rider, the director shall disapprove any such form if the premium rates charged or to be charged are…

With regard to credit unemployment insurance, the basic test of the reasonableness of the relation of benefits to the premium charged shall be the development of an anticipated loss ratio of claims incurred to premiums earned of at least fifty percent. If the total current expect…

In approving or establishing the premium rates for credit unemployment insurance, the division shall review the insurance company's actuarial data to assure that the rates are fair and reasonable. The insurance director may hire or contract with a qualified actuary to review the …

Any group property insurance authorized by credit card is subject to the provisions of this chapter to the extent such provisions are not inconsistent with the specific provisions of §§ 58-19-48 to 58-19-50 , inclusive. Source: SL 2001, ch 281 , § 3.

Group property insurance authorized by credit card shall be sold separately and shall be separately priced from any other insurance offered or sold at the same time unless it is included as part of an insurance offering provided to the debtor through the use of a credit card purc…

All group property insurance authorized by credit card insurance policies, certificates of insurance, notices of proposed insurance, applications for insurance, endorsements and riders delivered or issued for delivery in this state and the schedules of premium rates pertaining th…

When credit life insurance or credit health insurance is required as additional security for any indebtedness, the debtor shall, upon request to the creditor, have the option of furnishing the required amount of insurance through existing policies of insurance owned or controlled…

No lessor may require a lessee to purchase credit insurance as a term or condition of the lease. Source: SL 1998, ch 295 , § 2.

Within thirty days after the filing of any group property insurance authorized by credit card insurance policy, certificate of insurance, notice of proposed insurance, application for insurance, endorsement or rider, the director shall disapprove any such form if the premium rate…

The initial amount of credit life insurance shall 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 shall at no time exceed the scheduled or actual amount o…

Notwithstanding the provisions of § 58-19-6 , insurance on agricultural credit transaction commitments may be written for the amount of the portion of such commitment that has not been advanced by the creditor. Source: SL 1966, ch 111 , ch 27, § 4 (2).

The total amount of periodic indemnity payable by credit health insurance in the event of disability, as defined in the policy, shall not exceed the aggregate of the periodic scheduled unpaid installments of the indebtedness; and the amount of each periodic indemnity payment shal…