Printable Format16a-4-202. (UCCC) Amount of insurance. (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; 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 debt, 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 an open-end credit 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: L. 1973, ch. 85, § 74; L. 1988, ch. 85, § 9; L. 2024, ch. 6, § 93; January 1, 2025.
KANSAS COMMENT, 2010
1. Subsection (1) provides generally applicable limitations on the amounts of consumer credit insurance and benefits.
2. Subsection (2) provides more flexible limitations on the amounts of consumer credit insurance benefits necessary in connection with open end credit accounts and credit commitments.
3. Limitations of this kind are essential to the effectiveness of the requirement of K.S.A. 16a-4-203(2) that premium rates be reasonable in relation to the benefits provided by consumer credit insurance.
Law Review and Bar Journal References:
"Farmers and the Law: Exemptions and Exceptions," J. W. Looney, 50 J.B.A.K. 7, 16 (1981).
Attorney General's Opinions:
Consumer credit insurance; property and liability insurance. 87-3.
Property and liability insurance. 87-47.
Consumer credit insurance; amount of insurance. 88-13.