HARRY HUGHES, Governor

2405

(iii) Periodic benefits, the amount of
each of which may not exceed the originally scheduled total
of payments under the loan contract, divided by the number
of installments.

(3)  The amount of credit life insurance in force
may not exceed the unpaid principal but shall include all
accrued interest under the loan contract.

(4) (I) IN THIS PARAGRAPH, "INVOLUNTARY
UNEMPLOYMENT BENEFIT INSURANCE" MEANS ANY INSURANCE DESIGNED
TO PAY THE CREDITOR THE MONTHLY PAYMENT OBLIGATION OF THE
DEBTOR DUE TO THE DEBTOR'S INVOLUNTARY LOSS OF EMPLOYMENT.

(II) INVOLUNTARY UNEMPLOYMENT BENEFIT
INSURANCE SHALL PROVIDE THAT, IN THE EVENT OF INVOLUNTARY
LOSS OF EMPLOYMENT, THE AGGREGATE AMOUNT OF PERIODIC
BENEFITS PAYABLE IN THE EVENT OF INVOLUNTARY LOSS OF
EMPLOYMENT, AS DEFINED IN THE POLICY, MAY NOT EXCEED THE
THEN SCHEDULED UNPAID TOTAL OF PAYMENTS OF THE LOAN.

Article 48A - Insurance Code

24A. Credit Life, [and] CREDIT Health, AND
INVOLUNTARY UNEMPLOYMENT BENEFIT Insurance

436C.

(a)  The purpose of this subtitle is to promote the
public welfare by regulating credit life insurance, [and]
credit health insurance, AND INVOLUNTARY UNEMPLOYMENT
BENEFIT INSURANCE. Nothing in this subtitle is intended to
prohibit or discourage reasonable competition. The
provisions of this subtitle shall be liberally construed.

(b)  All INVOLUNTARY UNEMPLOYMENT BENEFIT INSURANCE,
ALL life insurance, and all health insurance in connection
with loans or other credit transactions shall be subject to
the provisions of this subtitle, except such insurance in
connection with a loan or other credit transaction of more
than eight years' duration, nor shall insurance be subject
to the provisions of this subtitle if the issuance of the
insurance is an isolated transaction on the part of the
insurer not related to an agreement or a plan for insuring
debtors of the creditor.

(c) (11) "INVOLUNTARY UNEMPLOYMENT BENEFIT INSURANCE"
MEANS INSURANCE ON A DEBTOR TO PROVIDE INDEMNITY FOR
PAYMENTS BECOMING DUE ON A SPECIFIC LOAN OR OTHER CREDIT
TRANSACTION WHILE THE DEBTOR IS INVOLUNTARILY UNEMPLOYED AS
DEFINED IN THE INSURANCE POLICY.

436D.

Credit life insurance, [and] credit health insurance,
AND INVOLUNTARY UNEMPLOYMENT BENEFIT INSURANCE shall be
issued only in the following forms: