§14A-4-113. Sale of insurance product in conjunction with

446 words·~2 min read·/ok/title-14a-consumer-credit-code/14a-4-113

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

subsection 10 mortgage – Conditions - Disclosure.

A creditor shall not sell any individual or group credit life, accident and health or unemployment insurance product on a prepaid single premium basis in conjunction with a subsection 10 mortgage referred to in subsection

(10)of Section 1-301 of Title 14A of the Oklahoma Statutes unless the following conditions are met:

(a)if a creditor offers any individual or group credit

life, accident and health or unemployment insurance

product purchased on a prepaid single premium basis in

conjunction with a subsection 10 mortgage, the

creditor shall offer the obligor the option of

purchasing all such insurance on a monthly premium

basis, if such option is available;

(b)a creditor shall not sell credit life, accident and

health or unemployment insurance products in

conjunction with a subsection 10 mortgage other than

where the insurance premiums are calculated, earned

and paid on a monthly or other regular, periodic basis

without providing a separate disclosure with a copy

acknowledged by the obligor no later than the time of

closing in a form substantially similar to the

following:

"Insurance Notice To Obligor

You have elected to buy credit life, accident and

health and/or unemployment insurance in conjunction

with this mortgage loan. The cost of this insurance

is being prepaid, and it is being financed at the

interest rate provided for in the loan. This

insurance is not required as a condition of closing

this loan, and it has been included with the loan at

your request.

You have the right at any time to cancel any or all

such policies purchased in conjunction with this loan.

You may cancel your policy or policies by signing and

returning a copy of this notice to your creditor or

you may contact your creditor directly.

If you cancel your insurance within thirty

(30)days

of the date of your loan, then you will receive either

a full refund or a credit against your loan account.

If you cancel your insurance at any other time, you

will receive either a refund or credit against your

loan account of any unearned premium. You must cancel

within thirty

(30)days of the date of the loan to

receive a full refund.

Credit Insurance Cancellation

(we)request that the creditor cancel the __________

insurance that I

(we)purchased in conjunction with my

(our)mortgage loan dated _________________

_____________________________

Today’s Date

_____________________________

Borrower”

(c)this subsection shall not apply to credit life,

accident and health or unemployment insurance sold by

the creditor for which the obligor chooses the

beneficiary and it is someone other than the creditor. Added by Laws 2003, c. 330, § 12, eff. Jan. 1, 2004.