§3806. Licensed lenders; charges for insurance

Link to law: http://legislature.vermont.gov/statutes/section/08/103/03806
Published: 2015

Print

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.)
Read Entire Law on legislature.vermont.gov