PARRIS N. GLENDENING, Governor

Ch. 11

13-105. FORMS OF INSURANCE.

CREDIT LIFE INSURANCE, CREDIT HEALTH INSURANCE, AND CREDIT
INVOLUNTARY UNEMPLOYMENT BENEFIT INSURANCE SHALL BE ISSUED ONLY IN
THE FOLLOWING FORMS:

(1)      AN INDIVIDUAL POLICY OF LIFE INSURANCE ISSUED TO A DEBTOR
ON A TERM PLAN; .

(2)      AN INDIVIDUAL POLICY OF HEALTH INSURANCE ISSUED TO A
DEBTOR ON A TERM PLAN;

(3)      A DISABILITY BENEFIT PROVISION IN AN INDIVIDUAL POLICY OF
CREDIT LIFE INSURANCE;

(4)      AN INDIVIDUAL POLICY OF INVOLUNTARY UNEMPLOYMENT
BENEFIT INSURANCE ISSUED TO A DEBTOR ON A TERM PLAN;

(5)      A GROUP POLICY OF LIFE INSURANCE ISSUED TO A CREDITOR THAT
PROVIDES INSURANCE ON THE LIVES OF DEBTORS ON THE TERM PLAN;

(6)      A GROUP POLICY OF HEALTH INSURANCE ISSUED TO A CREDITOR
ON A TERM PLAN THAT INSURES DEBTORS;

(7)      A DISABILITY BENEFIT PROVISION IN A GROUP POLICY OF CREDIT
LIFE INSURANCE; OR

(8)      A GROUP POLICY OF INVOLUNTARY UNEMPLOYMENT BENEFIT
INSURANCE ISSUED TO A CREDITOR ON A TERM PLAN THAT INSURES DEBTORS.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 436D.

In items (5), (6), and (8) of this section, the former phrase "for delivery" is
deleted as surplusage.

Former Art. 48A, § 436D(4), revised as items (6) and (7) of this section,
appeared to have the erroneous, misprinted conjunction "of that is corrected
to be "or" in the revision. See Ch. 610, Acts of 1981.

The Insurance Article Review Committee notes, for consideration by the
General Assembly, that the meaning of the references to insurance issued to a
debtor on a "term plan" is unclear. There is an inconsistency between items
(5) and (6) of this section because item (5) refers to insurance on the lives of
debtors "on the term plan" and item (6) refers to insurance issued to a
creditor "on a term plan that insures debtors".

Defined terms: "Credit health insurance" § 13-101

"Credit involuntary unemployment benefit insurance" § 13-101
"Credit life insurance" § 13-101
"Debtor" § 13-101
"Health insurance" § 1-101

- 351 -