Credit Life Insurance

Fort Worth life insurance lawyers see lots of situations where a person had a credit life policy.  It is most often associated with the purchase of an automobile.

There are specific laws in the Texas Insurance Code dealing with these types of policies.  Section 1153.052, says that each individual policy or group certificate of credit life insurance and credit accident and health insurance must set forth in the policy the following:

1. the insurer’s name and home office address
2. the debtor’s name and names
3. in the case of a certificate under a group policy, the identity, by name or otherwise, of the person or persons insured
4. the full amount of premium or the total identifiable insurance charge, if any, to the debtor, separately for credit life insurance and credit accident and health insurance
5. a description of the coverage including the amount and term
6. any exceptions, limitations, and restrictions

The policy must further state that the benefits must be paid to the creditor to reduce or extinguish the unpaid indebtedness and, wherever the amount of insurance may exceed the unpaid indebtedness, that any such excess must be payable to a beneficiary, other than the creditor, named by the debtor or to his or her estate.

A person should contact an Experienced Insurance Law Attorney or at the least contact the Texas Department of Insurance when a claim for credit life benefits is denied.