Regulatory Alerts2018-06-01
Alabama Consumer Credit Act Insurance Regulations
The Alabama Bureau of Loans amended regulations under the Consumer Credit Act to establish maximum rates and coverage requirements for credit life, accident, health, and property insurance. The rules mandate that insurers be licensed in Alabama, restrict credit disability sales to borrowers working at least thirty hours weekly, and prohibit creditors from requiring insurance as a condition of loan approval. Additionally, the amendments specify premium caps for joint coverage, define refund procedures for unearned premiums, and require clear written disclosures regarding the voluntary nature of insurance purchases.
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