NRS 690A.045 Amounts of credit life insurance.

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A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

1. Except as otherwise provided in this section, the amount of credit life insurance must not exceed the greater of the actual net debt or the scheduled net debt.

2. If coverage is written on the actual net debt, the amount payable at the time of loss must not be less than the actual net debt less any payments that are more than 2 months past due.

3. If the coverage is written on any scheduled net debt, the amount payable at the time of loss must not be less than:

(a)If the actual net debt is less than or equal to the scheduled net debt, the scheduled net debt;

(b)If the actual net debt is greater than the scheduled net debt but less than or equal to the scheduled net debt plus 2 months of payments, the actual net debt; or

(c)If the actual net debt is greater than the scheduled net debt plus 2 months of payments, the scheduled net debt plus 2 months of payments.

4. If a premium is assessed to the debtor on a monthly basis and is based on the actual net debt, the amount payable at the time of loss must not be less than the actual net debt on the date of death. If the premium is based on a balance that does not include accrued past due interest, the amount payable at the time of loss must not be less than the actual net debt less any accrued interest that is more than 2 months past due.

5. Insurance on agricultural loan commitments that do not exceed 1 year in duration may be written for not more than the amount of the loan on a nondecreasing or level term plan.

6. Insurance on educational loan commitments may be written for the net unpaid debt plus any unused commitment.

7. Coverage may be written for less than the net debt through the following methods:

(a)The amount of insurance may be the lesser of a stated level amount and the amount determined in accordance with subsection 2;

(b)The amount of insurance may be the lesser of a stated level amount and the amount determined in accordance with subsection 3;

(c)The amount of insurance may be a constant percentage of the amount determined in accordance with subsection 2;

(d)The amount of insurance may be a constant percentage of the amount determined in accordance with subsection 3; or

(e)In the absence of any exclusions for a preexisting condition, the amount of insurance payable in the event of death by natural causes may be limited to the balance as it existed 6 months before the date of death if:

(1)There have been one or more increases in the outstanding balance during the 6-month period other than increases resulting from the accrual of interest or late charges; and

(2)Evidence of individual insurability has not been required during the 6-month period.

8. Other kinds of insurance may be used if those kinds are not inconsistent with the provisions of this section.