83-53-7 - Limitations on amount of insurance. - Mississippi Statutes

§ 83-53-7. Limitations on amount of insurance.
 

(1)  The initial amount of credit life insurance shall not exceed the total amount repayable under the contract of indebtedness. In the case of revolving loan or revolving charge accounts, the insurance shall not at any time exceed the unpaid indebtedness. 
 

Notwithstanding the provisions of the above paragraph, the amount of insurance on agricultural loan commitments may be equal to the amount of the loan commitment. 

(2)  The total amount of periodic indemnity payable by credit disability insurance, in the event of disability as defined in the policy, shall not exceed the aggregate of the periodic scheduled unpaid installments of indebtedness, and the amount of each periodic indemnity shall not exceed the total amount repayable divided by the number of periodic installments. 
 

Sources: Laws,  1986, ch. 440, § 4, eff from and after May 1, 1986.