- (1) Written Disclosures. Before the purchase of credit life or credit accident and health insurance related to a transaction in which credit will be offered or extended to a consumer primarily for personal, family or household purposes, the following shall be disclosed to the consumer(s) in writing:
(a) If other insurance exists that covers the risk or that may cover the risk, one may not want or need credit insurance.
(b) A brief description of the coverage, including:
- The amount;
- The term;
- Any exceptions, limitations and exclusions;
- The insured event(s);
- Any waiting or elimination period;
- Any deductible;
- Any applicable waiver of premium provision;
- To whom the benefits would be paid;
- The premium rate or, if applicable, the actual premium charge for each coverage or for all coverages in a package.
(c) The financing rate, if any.
(d) If more than one kind of credit insurance is being made available, the ability of the consumer(s) to purchase each kind of credit insurance separately or only as a package.
(e) The conditions of eligibility.
(f) The conditions for cancellation and the method of refund of unearned premiums.
2. Procedures for Written Disclosures. The above disclosures shall be provided to the consumer(s) in the following manner:
(a) For credit life or credit accident and health insurance offered with the extension of credit or offered through a direct mail advertisement, disclosure shall be made in writing prior to the close of the credit insurance transaction and presented clearly and conspicuously.
(b) For the offer of credit life or credit accident and health insurance subsequent to the extension of credit by other than direct mail advertisements, disclosure may be provided orally if written disclosures are provided no later than the earlier of:
- Ten calendar days after the offer, or;
- The date any other written material is provided to the consumer(s).
3. Copy of the Credit Insurance Application. Unless the individual policy or group certificate of insurance is delivered at the time the debt is incurred, or at such other time that one elects to purchase coverage, the following shall be delivered to the consumer(s) prior to the close of the credit insurance transaction:
(a) A copy of the application for the policy or a notice of proposed insurance which:
- Is signed by the consumer(s).
- Sets forth the name and address of the insurer.
- Sets forth the name or names of the consumer(s).
Said copy of the application or notice of proposed insurance shall refer solely to insurance coverage. Said application shall be separate and apart from the loan, sale, or other statement of account, instrument or agreement, unless the information required by 209 CMR 52.02(3)(a) is prominently set forth therein.
(b) The premium rate or amount of payment for the insurance.
(c) The amount, term and a brief description of the coverage provided.