385.035. Term of policy, prepayment of debt, effect of. - Missouri Statutes

Term of policy, prepayment of debt, effect of.

385.035. The term of any credit life insurance or creditaccident and sickness insurance, subject to acceptance by theinsurer, shall commence on the date when the debtor becomesobligated to the creditor, except that, where a group policyprovides coverage with respect to existing obligations, theinsurance on a debtor with respect to such indebtedness shallcommence on the effective date of the policy. Where evidence ofinsurability is required and such evidence is furnished more thanthirty days after the date when the debtor becomes obligated tothe creditor, the term of the insurance may commence on the dateon which the insurance company determines the evidence to besatisfactory, and in such event there shall be an appropriaterefund or adjustment of any charge to the debtor for insurance.The term of such insurance shall not extend more than thirty daysbeyond the scheduled maturity date of the indebtedness exceptwhen extended without additional cost to the debtor. If theindebtedness is discharged due to renewal or refinancing prior tothe scheduled maturity date, the insurance in force shall beterminated before any new insurance may be issued in connectionwith the renewed or refinanced indebtedness. In all cases ofloan termination prior to scheduled maturity, all credit life andcredit accident and sickness insurance shall be terminated and arefund shall be paid or credited as provided in section 385.050.

(L. 1977 H.B. 610 § 6)