Michigan Laws 500.1611 – Exclusions
Current as of: 2024 | Check for updates
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(1) Creditor-placed insurance coverage does not include any of the following:
(a) Coverage for the cost of repossession.
Terms Used In Michigan Laws 500.1611
- Credit agreement: means the written document that sets forth the terms of the credit transaction and includes the security agreement. See Michigan Laws 500.1605
- Creditor-placed insurance: means insurance that is purchased unilaterally by the creditor, who is the named insured, subsequent to the date of the credit transaction, providing coverage against loss, expense, or damage to collateralized personal property as a result of fire, theft, collision, or other risks of loss that would either impair a creditor's interest or adversely affect the value of collateral covered by limited dual interest insurance. See Michigan Laws 500.1605
- Debtor: means the borrower of money or a purchaser or lessee of goods, services, property, rights, or privileges, for which payment is arranged through a credit transaction. See Michigan Laws 500.1605
(b) Skip, confiscation, and conversion coverage.
(c) Coverage for payment of mechanics’ or other liens that do not arise from a covered loss occurrence.
(d) Coverage that requires a debtor‘s insurance deductible to be less than $250.00.
(e) Coverage that is broader than the insurance coverages that meet the minimum insurance requirements of the credit agreement.
(2) This section does not prohibit the issuance of a separate policy or endorsement providing the coverages listed in subsection (1). However, no charge shall be passed along to the debtor for these coverages.