Florida Regulations 69O-163.0055: Limits of Coverage; Credit Life
Current as of: 2024 | Check for updates
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(1) The amount of Credit Life insurance for decreasing gross coverage shall be within the limits in Florida Statutes § 627.679
(2) If Credit Life Insurance coverage is written on the actual net debt, the amount of credit life insurance shall not exceed the amount of the loan, and the amount payable at the time of loss shall not be less than the actual net debt, less any payments more than 2 months overdue.
(3)(a) If a premium is assessed to the debtor on a monthly basis and is based on the actual net debt, then the amount of insurance payable at the time of loss shall be the actual net debt.
(b) When the premium for Credit Life insurance is computed on the basis of a balance which does not include accrued past due interest, then the amount payable at the time of loss shall not be less than the actual net debt less any accrued interest more than 2 months past due.
(4) Credit Life Insurance Coverage may, at the option of the insurer, be written for less than the net debt by the following methods:
(a) The amount of insurance may be the lesser of a stated level amount and the amount determined by subsection (2) of this rule; or
(b) The amount of insurance may be a constant percentage of the amount determined by subsection (2) of this rule.
Rulemaking Authority 624.308(1), 627.678 FS. Law Implemented 624.307(1), 627.679, 627.681 FS. History-New 2-11-03, Formerly 4-163.0055.
(2) If Credit Life Insurance coverage is written on the actual net debt, the amount of credit life insurance shall not exceed the amount of the loan, and the amount payable at the time of loss shall not be less than the actual net debt, less any payments more than 2 months overdue.
(3)(a) If a premium is assessed to the debtor on a monthly basis and is based on the actual net debt, then the amount of insurance payable at the time of loss shall be the actual net debt.
(b) When the premium for Credit Life insurance is computed on the basis of a balance which does not include accrued past due interest, then the amount payable at the time of loss shall not be less than the actual net debt less any accrued interest more than 2 months past due.
(4) Credit Life Insurance Coverage may, at the option of the insurer, be written for less than the net debt by the following methods:
(a) The amount of insurance may be the lesser of a stated level amount and the amount determined by subsection (2) of this rule; or
(b) The amount of insurance may be a constant percentage of the amount determined by subsection (2) of this rule.
Rulemaking Authority 624.308(1), 627.678 FS. Law Implemented 624.307(1), 627.679, 627.681 FS. History-New 2-11-03, Formerly 4-163.0055.