(a) A licensee may obtain consumer credit, credit loss of income, and property insurance on open-end loans under this chapter. The consumer credit insurance obtained by a licensee shall satisfy the requirements of Alaska Stat. Chapter 21.57. The property insurance obtained by a licensee shall satisfy the requirements of Alaska Stat. Chapter 21.39 and Alaska Stat. Chapter 21.42. The licensee shall comply with Alaska Stat. § 21.36.160 and 21.36.319 during all transactions with borrowers involving consumer credit, credit loss of income, and property insurance.
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Terms Used In Alaska Statutes 06.20.287

  • open-end loan: means a loan made by a licensee under this chapter under an agreement between the licensee and a borrower which provides that
    (A) the borrower may obtain advances of money from the licensee from time to time or the licensee may advance money on behalf of the borrower from time to time as directed by the borrower. See Alaska Statutes 06.20.900
  • property: includes real and personal property. See Alaska Statutes 01.10.060
(b) The licensee shall calculate the charge for credit life, credit loss of income, or disability insurance in each billing cycle by adding to the unpaid balance in the borrower’s account the current monthly premium rate for the coverage required at the rate set under Alaska Stat. Chapter 21.57, using the method specified in the loan agreement for determining the unpaid balance.
(c) A licensee may not cancel credit life, credit loss of income, or disability insurance obtained for an open-end loan if the borrower is delinquent in paying the monthly installments unless an installment is delinquent for 90 days or longer. The licensee shall advance to the insurer amounts necessary to keep the policy in force until the 90-day delinquency period has elapsed, and the borrower’s account may be charged for the amounts advanced to the insurer.
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