427.135. Collateral protection coverage canceled, when. - Missouri Statutes

Collateral protection coverage canceled, when.

427.135. 1. Any collateral protection coverage purchasedunilaterally by the creditor subsequent to the date of the credit agreementshall be canceled whenever and for so long as:

(1) The debtor has in place substitute insurance of at least thelevel of coverage required by the credit agreement to protect thecollateral; and

(2) The debtor is able to provide the creditor with proper evidenceof such coverage.

2. If, within thirty days after notice is sent pursuant to subsection1 or 2 of section 427.125, a debtor provides the creditor with properevidence that the debtor had insurance on the collateral as required by thecredit agreement on the date the collateral protection became effective andthat the debtor continues to have insurance on the collateral as requiredby the credit agreement, the creditor shall cancel the coverage that itpurchased and may not charge the debtor any costs, including insurancepremiums, interest, or other charges in connection with the coverage.

(L. 1997 H.B. 257)