WILLIAM DONALD SCHAEFER, Governor Ch. 693

the reasonable value of the property insured or the originally
scheduled total of payments under the loan contract.

(II)  The terms and conditions of the property
insurance policy shall be filed with and approved by the
Insurance Commissioner.

(III)  Property insurance may be provided by the
lender if the borrower, at the time the loan is made, fails to
furnish a loss payable endorsement for the protection of the
lender in an amount sufficient to cover the amount of the loan or
the value of the property securing the loan, whichever is less.

(IV)  If, however, within 30 days of the
inception date of the loan, the borrower does provide a loss
payable endorsement for the protection of the lender, and no
claim has been filed under the coverage purchased, the lender
shall cancel the property insurance on the loan and shall refund
the entire original property insurance premium to the borrower.

(V)  A lender providing property insurance under
this section shall give the borrower, at the time the loan is
made, a written notice of the borrower's right to provide a loss
payable endorsement for the protection of the lender and the
borrower's right to a refund of the entire property insurance
premium.

(2)  Accident and health insurance shall provide for:

(i) Benefits not exceeding the then scheduled
unpaid total of payments of the loan;

(ii) A waiting period of at least 14 days; and

(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.

- 4603 -