§ 58-57-15. Amount.
§58‑57‑15. Amount.
(a) Credit LifeInsurance.
(1) The amount of creditlife insurance shall not exceed the amount of unpaid indebtedness as it existsfrom time to time, less any unearned interest or finance charges; provided,however, that if the amount of credit insurance is based on a predeterminedschedule, the amount of credit insurance shall not exceed the scheduled amountof unpaid indebtedness, less any unearned interest or finance charges, plus anamount equal to three monthly installments or the equivalent thereof.
(2) Notwithstanding theprovisions of the above subdivision, insurance on seasonal credit linecommitments (such as may be found in agricultural credit transactions) notexceeding one year in duration may be written up to the amount of the loancommitment on a nondecreasing or level term plan.
(3) Notwithstanding thisor any other section, insurance on education credit transaction commitments maybe written for the amount of such commitment.
(b) Credit Accident andHealth and Credit Unemployment Insurance. The total amount of indemnitypayable by credit accident and health or credit unemployment insurance in theevent of disability or unemployment, as defined in the policy, shall not exceedthe indebtedness; and the amount of each monthly benefit shall not exceed theindebtedness divided by the number of months in the term of the loan. A dailybenefit equal in amount to one thirtieth of the scheduled monthly payment ispermissible. For open‑end credit transactions, the total amount ofindemnity payable shall not exceed the amount of unpaid indebtedness at thetime disability or unemployment begins, including interest and insurancecharges that would accrue on that indebtedness using the creditor's minimumpayment schedule. The periodic indemnity may exceed the creditor's minimumpayment amount. (1975, c. 660, s. 1; 1981, c. 759, s. 1; 1993, c. 226,s. 3; c. 553, s. 75.)