§ 58-57-5. Definitions. - North Carolina Statutes

§ 58‑57‑5. Definitions.

As used in this Article,unless the context requires otherwise, the following words or terms shall havethe meanings herein ascribed to them, respectively:

(1)        Repealed by SessionLaws 1991, c. 720, s. 6.

(2)        "Creditaccident and health insurance" means insurance on a debtor to provideindemnity for payments becoming due on a specific loan or other credittransaction as defined in G.S. 58‑51‑100, with or without insuranceagainst death by accident.

(2a)      "Creditinsurance agent" means an agent of an insurance company licensed in thisState who is authorized to solicit, negotiate or effect credit life insurance,credit accident and health insurance, credit unemployment insurance, creditproperty insurance, or any of them, but only to the extent as is authorized andlimited in this Article.

(3)        "Credit lifeinsurance" means insurance on the life of a debtor pursuant to or inconnection with a specific loan or other credit transaction as defined in G.S.58‑58‑10.

(4)        Recodified as G.S. §58‑57‑5(2a) (See Note.)

(4a)      "Credittransaction" means any transaction by the terms of which the repayment ofmoney loaned or loan commitment made, or payment for goods, services, orproperties sold or leased, is to be made at a future date or dates.

(4b)      "Creditunemployment insurance" means insurance on a debtor in connection with aspecified loan or other credit transaction to provide payment to a creditor ofthe debtor for the installment payments or other periodic payment becoming duewhile the debtor is involuntarily unemployed as defined in the policy.

(5)        "Creditor"means any lender of money or vendor or lessor of goods, services, property,rights or privileges, including any person that directly or indirectly providescredit in connection with any such sale or lease, for which payment is arrangedthrough a credit‑related transaction; or any successor to the right,title or interest of any such lender, vendor, lessor, or person extendingcredit, and an affiliate, associate, or subsidiary of any of them, or anydirector, officer, or employee of any of them or any other person in any wayassociated with any of them.

(5a)      "Critical periodconversion ratio" means the ratio of the benefit value of the criticalperiod divided by the benefit value of the full term.

(5b)      "Critical periodcoverage" means insurance coverage for which benefits are limited to astated number of payments or the payments end with the expiration of thepolicy, whichever is less.

(6)        "Debtor"means a borrower of money or a purchaser or lessee of goods, services,property, rights or privileges for which payment is arranged through a credittransaction.

(6a)      "Family leavecredit insurance" means insurance on a debtor in connection with aspecified loan or other credit transaction to provide payment to a creditor ofthe debtor for the installment payments or other periodic payments becoming duewhen the debtor suffers a loss of income because of a voluntary, employer‑approvedleave of absence for qualifying events specified in G.S. 58‑57‑115(d).

(7)        "Indebtedness"means the total amount payable for the term of the loan by debtor to creditorin connection with a loan or other credit transaction, including principal,interest, allowable charges, and any premiums authorized hereunder.

(7a)      "Joint accidentand health coverage" means credit accident and health insurance coveringtwo or more debtors; provided that only one monthly benefit, as defined in G.S.58‑57‑15(b), shall be payable each month on a specific indebtednessregardless of the number of debtors insured.

(8)        "Joint lifecoverage" means credit life insurance covering two or more lives, theentire amount of insurance being payable upon the death of the first insureddebtor to die.

(9)        "Lease"means a contract whereby the lessee of a "motor vehicle," as definedin G.S. 20‑4.01(23), contracts to pay as compensation for use a sumsubstantially equivalent to or in excess of the aggregate value of theproperty, but not exceeding the term of years in G.S. 58‑57‑1.

(10)      "Open‑endcredit" means credit extended by a creditor under an agreement in which:

a.         The creditorreasonably contemplates repeated transactions;

b.         The creditor imposesa finance charge from time to time on an outstanding unpaid balance; and

c.         The amount of creditthat may be extended to the debtor during the term of the agreement (up to anylimit set by the creditor) is generally made available to the extent that anyoutstanding balance is repaid.

"Open‑endcredit" includes credit card balances.

(11)      "Truncatedcoverage" means a credit insurance benefit with a term of insurancecoverage that is less than the term of the credit transaction. (1975, c. 660, s. 1; 1987, c.826, ss. 2, 3; 1991, c. 720, s. 6; 1993, c. 226, s. 2; 1995, c. 193, s. 45; c.208, s. 1; 1999‑351, s. 5.3; 2005‑181, s. 1; 2007‑298, s.6.1; 2007‑484, s. 43.5.)