2545-S AMH BENS OSBO 5

SHB 2545 - H AMD

By Representative Benson

On page 1, beginning on line 11, after "(1)" strike all material through line 17 and insert "An insurer shall not sell any single premium credit insurance product in connection with a residential mortgage loan unless the following conditions are met:

(a) Within sixty days after the commissioner approves an insurers monthly installment credit insurance product or one year after the effective date of this act if the insurer has not filed a monthly installment credit insurance product application with the commissioner,

if an insurer offers a single premium credit insurance product in connection with residential mortgage loan, the insurer shall offer the borrower the option of paying the premiums on such insurance in monthly installments; and

(b) Unless the terms of the credit insurance policy allow for the payment of the premium on a monthly or other regular, periodic basis, the insurer must provide the borrower with a separate written disclosure, with a copy acknowledged by the insured no later than the time of closing, in a form substantially similar to the following:

CREDIT-RELATED INSURANCE

BORROWER=S DISCLOSURE AND CONSENT

You have elected to purchase credit life, accident and health, and/or unemployment insurance in conjunction with this mortgage loan. The cost of this insurance is being prepaid and financed at the interest rate provided for in this loan.

This insurance is not required as condition of closing this loan and has been included with the loan at your request.

At any time you have the right to cancel any or all such policies purchased in conjunction with this loan. You may cancel your policy or policies by signing and returning a copy of this notice to your lender or you may contact the lender directly.

If you cancel your insurance within 30 days of the date of your loan, then you will receive either a full refund or a credit against your loan account. If you cancel your insurance at any other time, you will receive either a refund or credit against your loan account of any unearned premium.

You must cancel within 30 days of the date of the loan to receive a full refund.

CREDIT INSURANCE CANCELLATION

I (we) request that the lender cancel the insurance that I (we) purchased in conjunction with my (our) mortgage loan dated _________ .

_____________________________________DATE

_____________________________________BORROWER

ACKNOWLEDGMENT OF RECEIPT

_____________________________________DATE

_____________________________________BORROWER ;

(c) If within thirty days of obtaining a residential mortgage loan the borrower elects to cancel single premium credit insurance purchased in connection with such loan, the insurer shall provide the borrower with either a full premium refund or a full premium credit against the unpaid loan balance. If the borrower elects to cancel such insurance at any other time, the borrower shall receive a refund or credit against the unpaid loan balance of any unearned premium."

On page 2, line 3, after "dollars" insert ",exclusive of fees"