Montana Code 33-21-202. Amount
33-21-202. Amount. (1) The initial amount of credit life insurance may not exceed the total amount repayable under the contract of indebtedness. If an indebtedness is repayable in substantially equal installments, the amount of credit life insurance may not exceed the scheduled or actual amount of unpaid indebtedness on the date of death, whichever is greater. The amount of credit life insurance written in connection with:
Terms Used In Montana Code 33-21-202
- Contract: A legal written agreement that becomes binding when signed.
- Credit disability insurance: means insurance on a debtor or joint debtors to provide indemnity for payments becoming due on a specific loan or other credit transaction while the debtor or either of the joint debtors is disabled as defined in the policy. See Montana Code 33-21-103
- Credit life insurance: means insurance on the life of a debtor or the lives of joint debtors pursuant to or in connection with a specific loan or other credit transaction. See Montana Code 33-21-103
- Credit transaction: means a transaction by the terms of which, at a future date:
(a)repayment of money loaned is made;
(b)a loan commitment is made; or
(c)payment for goods, services, or property sold or leased is made. See Montana Code 33-21-103
- Creditor: means :
(a)a lender of money or vendor or lessor of goods, services, property, rights, or privileges, for which payment is arranged through a credit transaction;
(b)any successor to the right, title, or interest of a lender, vendor, or lessor;
(c)an affiliate, associate, or subsidiary of a lender, vendor, or lessor;
(d)a director, officer, or employee of a lender, vendor, or lessor; or
(e)any other person in any way associated with a lender, vendor, or lessor. See Montana Code 33-21-103
- Finance charge: The total cost of credit a customer must pay on a consumer loan, including interest. The Truth in Lending Act requires disclosure of the finance charge. Source: OCC
- Indebtedness: means the total amount payable by a debtor to a creditor in connection with a loan or other credit transaction. See Montana Code 33-21-103
- Usage: means a reasonable and lawful public custom concerning transactions of the same nature as those which are to be affected thereby, existing at the place where the obligation is to be performed, and either known to the parties or so well established, general, and uniform that the parties must be presumed to have acted with reference thereto. See Montana Code 1-1-206
(a)a credit transaction repayable over a term in excess of 63 months or, at the option of the insurer, for a shorter term may not exceed the actual amount of unpaid indebtedness on the date of death, excluding any:
(i)unearned interest or finance charges; and
(ii)delinquency or extension exceeding 4 months;
(b)an open-end credit agreement having a credit limit exceeding $10,000 may not exceed the plan’s credit limit;
(c)an agricultural loan commitment not exceeding 1 year may not exceed the amount of the loan commitment on a nondecreasing or level term plan; and
(d)an education loan commitment may be for the amount of the portion of the commitment that has not been advanced by the creditor.
(2)The amount of periodic indemnity payable by credit disability insurance in the event of disability, as defined in the policy, may not exceed:
(a)the aggregate of the periodic scheduled unpaid installments of indebtedness; and
(b)the original indebtedness divided by the number of periodic installments.
(3)A group or individual credit disability insurance policy or a certificate that provides coverage for credit card indebtedness must provide a disability benefit during each credit card billing cycle throughout the term of coverage that, subject to any specified dollar amount limit defined in the policy or certificate, may not be less than the sum of the following amounts payable in the billing cycle and based on the insured balance on the date that an insured disability commences:
(a)the greater of:
(i)the minimum payment required by the creditor for the billing cycle, less any past-due payments and accelerated payments required for the overlimit usage of the credit card; or
(ii)the finance charge calculated pursuant to the credit card contract;
(b)all premiums charged for credit disability insurance coverage; and
(c)all other charges related to the insured balance as of the date the insured disability commences that are incurred in the billing cycle as a result of the insurer’s delay in processing a claim payment.