Model Act

The act governs insurance issued to debtors in connection with credit transactions, setting standards for the coverage that may be offered and for its amount and term. It requires policies and certificates to contain specified provisions and to be delivered to the debtor, and it subjects the forms, notices, and related documents to filing and approval by the regulator, which may also withdraw approval; premiums and refunds, the issuance of policies, and the handling of claims are likewise regulated. It preserves the debtor's right to choose the insurer where insurance is taken as additional security, limits the compensation payable in connection with such coverage, and provides for enforcement, penalties, and judicial review of the regulator's actions.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.