385.030. Amount of insurance permitted--payments, amount of, limited.

MISSOURI STATUTES AND CODES

385.030. Amount of insurance permitted--payments, amount of, limited.

Amount of insurance permitted--payments, amount of, limited.

385.030. 1. The initial amount of credit life insuranceshall not exceed the total amount repayable under the contract ofindebtedness and, where an indebtedness is repayable insubstantially equal installments, the amount of insurance shallat no time exceed the scheduled or actual amount of unpaidindebtedness, whichever is greater.

2. Notwithstanding the provisions of subsection 1 of thissection, insurance on agricultural credit transactioncommitments, not exceeding forty-eight months in duration, may bewritten up to the amount of the loan commitment on anondecreasing or level term plan.

3. Notwithstanding any other provision of this section,insurance on educational credit transaction commitments may bewritten for the amount of the portion of the commitment that hasnot been advanced by the creditor.

4. The total amount of periodic indemnity payable by creditaccident and sickness insurance in the event of disability, asdefined in the policy, shall not exceed the aggregate of theperiodic scheduled unpaid installments of the indebtedness, andthe amount of each periodic indemnity payment shall not exceedthe original indebtedness divided by the number of periodicinstallments or divided by the number of months of its term inthe case of an agricultural loan commitment insured undersubsection 2 of this section.

5. Notwithstanding any other provision of this section,insurance on residential real estate secured credit transactioncommitments may be written up to the amount of the loancommitment.