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- Alaska Statutes.
- Title 6. Banks and Financial Institutions
- Chapter 20. Alaska Small Loans Act
- Section 287. Insurance On Open-End Loans.
previous: Section 285
. Open-End Loans.
next: Section 290
. Purchase of Wages or Other Compensation For $25,000 or Less.
AS 06.20.287. Insurance On Open-End Loans.
- (a) A licensee may obtain consumer credit, credit loss of income, and property insurance on open-end loans under this
chapter. The consumer credit insurance obtained by a licensee shall satisfy the requirements of AS 21.57. The property insurance obtained by a licensee shall satisfy
the requirements of AS 21.39 and AS 21.42. The licensee shall comply with AS 21.36.160
and 21.36.165 during all transactions with borrowers
involving consumer credit, credit loss of income, and property insurance.
- (b) The licensee shall calculate the charge for credit life, credit loss of income, or disability insurance in each
billing cycle by adding to the unpaid balance in the borrower's account the current monthly premium rate for the
coverage required at the rate set under AS 21.57, using the
method specified in the loan agreement for determining the unpaid balance.
- (c) A licensee may not cancel credit life, credit loss of income, or disability insurance obtained for an open-end loan if
the borrower is delinquent in paying the monthly installments unless an installment is delinquent for 90 days or
longer. The licensee shall advance to the insurer amounts necessary to keep the policy in force until the 90-day
delinquency period has elapsed, and the borrower's account may be charged for the amounts advanced to the insurer.
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