The term of any credit life insurance or credit accident and health insurance shall,
subject to acceptance by the insurer, commence on the date when the debtor becomes
obligated to the creditor, except that, if a group policy provides coverage with respect
to existing obligations, the insurance on a debtor with respect to such indebtedness
shall commence on the effective date of the policy. The term of such insurance shall not extend more than fifteen days beyond the scheduled
maturity date of the indebtedness except when extended without additional cost to
the debtor. If the indebtedness is discharged due to renewal or refinancing prior to the scheduled
maturity date, the insurance in force shall be terminated before any new insurance
may be issued in connection with the renewed or refinanced indebtedness and if the
indebtedness is discharged due to a prepayment, the insurance in force shall be terminated
as of the date of the prepayment. In all cases of termination prior to scheduled maturity, a refund shall be paid or
credited as provided in section 44-1709.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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