31A-22-805 - Beginning date of insurance. - Utah Statutes

31A-22-805. Beginning date of insurance.
(1) Except as provided under Subsection (2), any credit life insurance or credit accidentand health insurance, subject to acceptance by the insurer, commences on the date when thedebtor becomes obligated to the creditor.
(2) (a) Where a group policy provides coverage for existing obligations, the insurance ona debtor with respect to that indebtedness commences on the effective date of the policy.
(b) Where evidence of insurability is required and the evidence is furnished more than 30days after the debtor becomes obligated to the creditor, the insurance may commence when theinsurance company determines the evidence of insurability to be satisfactory. In this event, theinsurer shall make an appropriate refund or adjustment of any charge to the debtor for insurance.
(3) The insurance may not extend more than 15 days beyond the scheduled maturity dateof the indebtedness, unless it does so at no additional cost to the debtor.
(4) If the indebtedness is discharged due to renewal or refinancing prior to the scheduledmaturity date, the insurance in force shall terminate before any new insurance may be issued inconnection with the renewed or refinanced indebtedness. In all cases of termination prior toscheduled maturity, a refund shall be paid or credited as provided in Section 31A-22-808.

Amended by Chapter 116, 2001 General Session