1. The initial amount of credit life insurance shall not exceed the total amount repayable
under the contract of indebtedness and, where an indebtedness is repayable in substantially
equal installments, the amount of insurance shall at no time exceed the scheduled
or actual amount of unpaid indebtedness, whichever is greater.
2. Notwithstanding the provisions of subsection 1 of this section, insurance on agricultural
credit transaction commitments, not exceeding forty-eight months in duration, may
be written up to the amount of the loan commitment on a nondecreasing or level term
3. Notwithstanding any other provision of this section, insurance on educational credit
transaction commitments may be written for the amount of the portion of the commitment
that has not been advanced by the creditor.
4. The total amount of periodic indemnity payable by credit accident and sickness
insurance in the event of disability, as defined in the policy, shall not exceed the
aggregate of the periodic scheduled unpaid installments of the indebtedness, and the
amount of each periodic indemnity payment shall not exceed the original indebtedness
divided by the number of periodic installments or divided by the number of months
of its term in the case of an agricultural loan commitment insured under subsection
2 of this section.
5. Notwithstanding any other provision of this section, insurance on residential real
estate secured credit transaction commitments may be written up to the amount of the
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