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PUBLIC LAW 87-686-SEPT. 25, 1962
[76 STAT.
Public Law 87-686 September 25, 1962 [S.2357]
The Act for the Regulation of Credit Life Insurance and Credit Accident and Health Insurance.
AN ACT To provide for the regulation of credit life insurance and credit accident and health insurance in the District of Columbia.
Be it enacted by the Sermte and House of Representatives of the United States of America in Congress assembled, That (a) this Act, regulating credit life insurance and credit accident and health insurance in the District of Columbia may be cited as "The Act for the Regulation of Credit Life Insurance and Credit Accident and Health Insurance". (b) All life insurance and all accident and health insurance in connection with loans or other credit transactions of less than five years duration in the District of Columbia shall be subject to the provisions of this Act. Such insurance written in connection with a loan or other credit transaction of five years duration or more shall not be subject to the provisions of this Act, nor shall such insurance be subject to the provisions of this Act if the issuance of the insurance is an isolated transaction on the part of the insurer not related to a plan or regular course of conduct for insuring debtors of the creditor. DEFINITIONS
SEC. 2. For the purpose of this Act— (a) "Commissioners" means the Commissioners of the District of Columbia; (b) "Credit life insurance" means insurance issued on the life of a debtor pursuant to or in connection with a specific loan or other credit transaction; (c) "Credit accident and health insurance" means insurance against the disability of a debtor which provides indemnity for payments on a specific loan or other credit transaction; (d) "Creditor" means the lender of money or vendor of goods, services, or property, including a lessor under a lease intended as a security, tor which payment is arranged through a loan or other credit transaction, and includes any successor to the right, title, or interest of any such lender, vendor, or lessor; (e) "Debtor" means a borrower of money or purchaser of goods, services, or property, including a lessee under a lease intended as a security, for which payment is arranged through a loan or other credit transaction; (f) "District" means the District of Columbia; (g) "Indebtedness" means the amount payable by a debtor to a creditor in connection with a loan or other credit transaction; and (h) "Superintendent" means the Superintendent of Insurance of the District of Columbia. FORMS OF CREDIT L I F E INSURANCE A N D CREDIT ACCIDENT A N D H E A L T H INSURANCE
SEC. 3. Credit life insurance and credit accident and health insurance shall be issued only in the following forms: (a) Individual policies of life insurance issued to debtors on the term plan; (b) Individual policies of accident and health insurance issued to debtors on a term plan or disability provisions in individual life policies to provide such coverage; (c) Group policies of life insurance issued to creditors providing insurance upon the lives of debtors on the term plan;
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