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The Vermont Statutes Online
Title
08
:
Banking and Insurance
Chapter
103
:
LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS
Subchapter
005
:
GROUP LIFE INSURANCE
§
3806. Licensed lenders; charges for insurance
In the case of a
debtor under section 2201 et seq. of this title the collection of identifiable
charges by the lender shall not be deemed a violation of said chapter if:
(1) The
identifiable charge to the debtor is consistent with the actual cost of such
insurance to the lender. The identifiable charge to the debtor shall be deemed
consistent with the actual cost of the insurance to the lender if the aggregate
of all such identifiable charges to all debtors of the same class, determined
by conditions pertaining to the debt, is not greater than the premiums charged
by the insurer, as computed at the time the charge to the debtor is determined;
(2) The payment
of such identifiable charge is optional with the debtor; and
(3) Upon
discharge of the debt, whether through prepayment, renewal or refinancing, the
debtor is paid a pro rata refund of the identifiable charge paid by the debtor
computed according to a schedule to be approved by the Commissioner of Financial
Regulation. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 2, subch. 6, § 6);
amended 1989, No. 225 (Adj. Sess.), § 25(b); 1995, No. 180 (Adj. Sess.), §
38(a); 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012.)