Ch. 11

1996 LAWS OF MARYLAND

insurer" are added for clarity and specificity to identify the entity that is
required to act.

In subsection (c)(3) of this section, the reference to termination "of the
insurance" is added for clarity.

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

"Credit involuntary unemployment benefit insurance" § 13-101

"Credit life insurance" § 13-101

"Creditor" § 13-101

"Debtor" § 13-101

"Indebtedness" § 13-101

"Insurance" § 1-101

"Insurer" § 1-101

"Policy" § 1-101

13-108. INDIVIDUAL POLICIES AND GROUP. CERTIFICATES.

(A)     IN GENERAL.

CREDIT LIFE INSURANCE, CREDIT HEALTH INSURANCE, AND CREDIT
INVOLUNTARY UNEMPLOYMENT BENEFIT INSURANCE SHALL BE EVIDENCED BY AN
INDIVIDUAL POLICY OR, IN THE CASE OF GROUP INSURANCE, A GROUP
CERTIFICATE OF INSURANCE.

(B)     CONTENTS.

IN ADDITION TO OTHER REQUIREMENTS OF LAW, EACH INDIVIDUAL POLICY
OR GROUP CERTIFICATE OF CREDIT LIFE INSURANCE, CREDIT HEALTH INSURANCE,
OR CREDIT INVOLUNTARY UNEMPLOYMENT BENEFIT INSURANCE SHALL INCLUDE:

(1)      THE NAME AND HOME OFFICE ADDRESS OF THE INSURER;

(2)      THE NAME OF THE INSURED DEBTOR UNDER AN INDIVIDUAL
POLICY, OR THE NAME OR OTHER IDENTIFICATION OF THE INSURED DEBTOR
UNDER A GROUP CERTIFICATE;

(3)      THE PREMIUM OR AMOUNT OF PAYMENT, IF ANY, PAID BY THE
DEBTOR SHOWN SEPARATELY FOR CREDIT LIFE INSURANCE, CREDIT HEALTH
INSURANCE, AND CREDIT INVOLUNTARY UNEMPLOYMENT BENEFIT INSURANCE;

(4)      A DESCRIPTION OF THE COVERAGE, INCLUDING THE AMOUNT AND
TERM OF THE COVERAGE AND ANY EXCEPTIONS, LIMITATIONS, OR RESTRICTIONS;
AND

(5)      A STATEMENT THAT THE BENEFITS SHALL BE PAID TO THE
CREDITOR TO REDUCE OR EXTINGUISH THE UNPAID INDEBTEDNESS AND, IF THE
AMOUNT OF CREDIT LIFE INSURANCE, CREDIT HEALTH INSURANCE, OR CREDIT
INVOLUNTARY UNEMPLOYMENT BENEFIT INSURANCE EXCEEDS THE UNPAID
INDEBTEDNESS, THE EXCESS SHALL BE PAYABLE TO A BENEFICIARY, OTHER THAN
THE CREDITOR, NAMED BY THE DEBTOR OR TO THE ESTATE OF THE DEBTOR.

- 354 -