(1) Except as provided in subsection (2),
(a) In the case of consumer credit insurance providing life coverage, the amount of insurance may not initially exceed the debt and, if the debt is payable in installments, may not at any time exceed the greater of the scheduled or actual amount of the debt. For purposes of credit coverage, the "approximate amount of the debt" is defined as follows: (1) the periodic installment payment multiplied by the number of scheduled periodic installment payments for a loan with a term of sixty months or less; (2) the amount necessary to liquidate the remaining debt in a single lump sum payment, excluding all unearned interest and other unearned finance charges, plus six monthly installment payments for a loan with a term in excess of sixty months. In the case of a consumer lease contract, the residual value of the consumer credit lease may be included in the debt; however, the lessor shall not require the lessee to buy insurance covering the residual value of the leased item; or
(b) In the case of any other consumer credit insurance, the total amount of periodic benefits payable may not exceed the total of scheduled unpaid installments of the debts, and the amount of any periodic benefit may not exceed the original amount of debt divided by the number of periodic installments in which it is payable.
(2) If consumer credit insurance is provided in connection with a revolving charge account or revolving loan account the amounts payable as insurance benefits may be reasonably commensurate with the amount of debt as it exists from time to time. If consumer credit insurance is provided in connection with a commitment to grant credit in the future, the amounts payable as insurance benefits may be reasonably commensurate with the total from time to time of the amount of debt and the amount of the commitment.
HISTORY: 1962 Code Section 8-800.312; 1974 (58) 2879; 1976 Act No. 686 Section 36; 1985 Act No. 139, Section 4; 1999 Act No. 66, Section 12.
Structure South Carolina Code of Laws
Title 37 - Consumer Protection Code
Section 37-4-101. Short title.
Section 37-4-103. "Consumer credit insurance" defined.
Section 37-4-104. Creditor's provision of and charge for insurance; excess amount of charge.
Section 37-4-105. Conditions applying to insurance to be provided by creditor.
Section 37-4-106. Unconscionability.
Section 37-4-107. Maximum charge by creditor for insurance.
Section 37-4-108. Refund or credit required; amount.
Section 37-4-109. Existing insurance; choice of insurer.
Section 37-4-111. Cooperation between administrator and the Director of the Department of Insurance.
Section 37-4-112. Administrative action of Director of the Department of Insurance.
Section 37-4-201. Term of insurance; medical evidence of insurability disclosure requirements.
Section 37-4-202. Amount of insurance.
Section 37-4-203. Filing and approval of rates and forms.
Section 37-4-204. Minimum charges and retentions.
Section 37-4-205. Payment on legitimate insurance claim; damages; fees; costs.
Section 37-4-206. Required disclosures; need for debtor to sign.
Section 37-4-207. Misrepresentation of medical condition as basis for voiding insurance.
Section 37-4-208. Amount charged for nonfiling insurance coverage.
Section 37-4-209. Combining disclosures.
Section 37-4-210. What constitutes disability.
Section 37-4-301. Property insurance.
Section 37-4-302. Insurance on creditor's interest only.