Title 806 | Chapter 019 | Regulation 040
806 KAR 19:040.Extinguishment of debt; options.
Section 1.
In the event of extinguishment of a debt by prepayment wherein the credit transaction is secured by any type of credit insurance, and the debt is not renewed or refinanced, termination of such insurance is not required, and may, at the option of the debtor, continue for the benefit of the secondary beneficiary. The agent shall, within ten (10) days of the extinguishment of the debt, notify the debtor of the debtor's option to continue the insurance or receive a pro rata return of the premiums.Section 2.
In the event the debtor elects to continue such insurance in force, the agent shall give written notice to the insurer within ten (10) days of the date the debtor makes his election, that the debt is extinguished and that the insurance is to remain in force for the benefit of the secondary beneficiary.HISTORY: (1-19.04; 1 Ky.R. 1084; eff. 7-2-75; TAm eff. 8-9-2007; Crt eff. 2-26-2020; TAm 3-10-2020.)
806 KAR 19:040.Extinguishment of debt; options.
Section 1.
In the event of extinguishment of a debt by prepayment wherein the credit transaction is secured by any type of credit insurance, and the debt is not renewed or refinanced, termination of such insurance is not required, and may, at the option of the debtor, continue for the benefit of the secondary beneficiary. The agent shall, within ten (10) days of the extinguishment of the debt, notify the debtor of the debtor's option to continue the insurance or receive a pro rata return of the premiums.Section 2.
In the event the debtor elects to continue such insurance in force, the agent shall give written notice to the insurer within ten (10) days of the date the debtor makes his election, that the debt is extinguished and that the insurance is to remain in force for the benefit of the secondary beneficiary.HISTORY: (1-19.04; 1 Ky.R. 1084; eff. 7-2-75; TAm eff. 8-9-2007; Crt eff. 2-26-2020; TAm 3-10-2020.)