18A:68-11.6 - Credit life or health insurance - New Jersey Statutes

18A:68-11.6.  Credit life or health insurance
    When a person liable for the payment of an educational loan consents in writing thereto, the institution of higher education may obtain or provide either or both credit life insurance and credit health insurance on such person, pursuant to chapter 29 of subtitle 3 of Title 17B of the New Jersey Statutes (N.J.S. 17A:29-1 et seq.), and may deduct and retain from the proceeds  of such loan an amount equal to the premium lawfully charged by the insurer  issuing such insurance.  If there is more than one person who is liable for the  payment of such loan, insurance may be obtained as herein authorized only upon  one of such persons.  Nothing in any law of this State shall prohibit an  institution of higher education or any employee or agent thereof from  collecting the premium or identifiable charge for such insurance, dividend or  other gain or advantage resulting from such insurance.

     L.1977, c. 123, s. 6, eff. June 6, 1977.