Marvin Mandel, Governor                           983

force shall be terminated before any new insurance may be issued in
connection with the renewed or refinanced indebtedness. In all cases
of termination prior to scheduled maturity, a refund shall be paid or
credited as provided in Section 436-I of this Article.

436G. Provisions of Policies and Certificates of Insurance; Dis-
closure to Debtors.

(a)    All credit life insurance and credit health insurance shall be
evidenced by an individual policy, or in the case of group insurance
by a certificate of insurance, which individual policy or group cer-
tificate of insurance shall be delivered to the debtor.

(b)    Each individual policy or group certificate of credit life
insurance or credit health insurance, in addition to other require-
ments of law, shall set forth the name and home office address of the
insurer, the name or names of the insured debtor or in the case of a
certificate under a group policy the identity by name or otherwise of
the insured debtor, the premium or amount of payment, if any, by
the debtor separately for credit life insurance and credit health
insurance, a description of the coverage including the amount and
term thereof, and any exceptions, limitations, and restrictions, and
shall state that the benefits shall be paid to the creditor to reduce or
extinguish the unpaid indebtedness, and wherever the amount of
insurance may exceed the unpaid indebtedness, that the excess shall
be payable to a beneficiary, other than the creditor, named by the
debtor or to his estate.

(c)    The individual policy or group certificate of insurance shall
be delivered to the insured debtor at the time the indebtedness is
incurred except as hereinafter provided.

(d)    If the 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 the policy or a notice of proposed insur-
ance, signed by the debtor and setting forth the name and home office
address of the insurer, the name or names of the insured debtor, the
premium or amount of payment by the debtor, if any, separately
for credit life insurance and credit health insurance, the amount,
term and a brief description of the coverage provided, shall be
delivered to the debtor at the time the indebtedness is incurred. The
copy of the application for, or notice of proposed insurance, shall
also refer exclusively to insurance coverage, and shall be separate
and apart from the loan, sale or other credit statement of account,
instrument or agreement, unless the information required by this
subsection is prominently set forth therein. Upon acceptance of the
insurance by the insurer and within thirty (30) 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. The application or notice of proposed insurance shall
state that upon acceptance by the insurer, the insurance shall become
effective as provided in Section 436F of this Article.

(e)    If the named insurer does not accept the risk, 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
is less than that set forth in the notice of proposed insurance, an
appropriate refund shall be made.