Rule 20:06:06:11 Disclosure requirements.
20:06:06:11. Disclosure requirements. Any application or
other document disclosing the coverage provided for under credit life, credit
health, credit property, or credit unemployment insurance shall clearly and
prominently disclose the amount, type, and length of coverage provided or being
applied for. If the credit insurance is associated with a loan that contains a
balloon payment, the application and other documents provided to the insured
shall clearly and prominently disclose whether or not the balloon payment is
covered by the credit insurance. If the balloon payment is not covered, the
mere listing of the number of months or other time frames for which the credit
insurance provides coverage is insufficient disclosure. Separate and prominent
disclosure that the balloon payment is not covered must be provided in any such
application or other coverage or disclosure document. Examples of documents
which do not comply with this section are found in Appendices A and B. This
section applies to all applications taken and to any policy, certificate, or
contract issued on or after September 1, 2006.
32 SDR 203, effective June 5, 2006.
Authority: SDCL 58-19-34(9).
Implemented: SDCL 58-19-26, 58-19-44, 58-19-50.
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