§ 58-57-20. Term; termination prior to scheduled maturity. - North Carolina Statutes

§58‑57‑20.  Term; termination prior to scheduled maturity.

Except as otherwise providedin this section, the term of any credit life insurance or credit accident andhealth insurance shall, subject to acceptance by the insurer, commence on thedate when the debtor becomes obligated to the creditor, except that, where agroup policy provides coverage with respect to existing obligations, theinsurance on a debtor with respect to such indebtedness shall commence on theeffective date of the policy.  For credit insurance offered to the debtorsubsequent to the date the debtor becomes obligated to the creditor, the termof the insurance shall, subject to the acceptance by the insurer, commence notmore than 30 days following the insurer's receipt of the debtor's request forthe insurance. The term of such insurance shall not extend more than 15 daysbeyond the maturity date of the indebtedness or final installment thereof; butthe term of the insurance may be less than the term of the indebtedness toprovide truncated coverage in connection with transactions having initial termsof more than 60 months or consistent with any age or other terminationprovisions contained in the policy.  If the indebtedness is discharged due toprepayment, the insurance in force shall be terminated unless otherwiserequested by the insured in writing.  If the indebtedness is discharged due torenewal or refinancing prior to such maturity date, the insurance in forceshall be terminated before any new insurance may be issued in connection withthe renewed or refinanced indebtedness.  In all cases of termination prior toscheduled maturity, a refund shall be paid or credited as provided in G.S. 58‑57‑50.(1975, c. 660, s. 1; 1991, c. 720, s. 30; 1993, c. 226, s. 4.)