GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

H	1 

HOUSE BILL 1518

Short Title:  Credit Ins. Clarification.	(Public)

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Sponsors: Representatives Church; and Buchanan.

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Referred to:  Financial Institutions.

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May 15, 2000

A BILL TO BE ENTITLED
AN ACT TO CLARIFY THAT CREDIT INSURANCE MAY BE PAID ON A LEVEL CHARGE MONTHLY BASIS WITHOUT VIOLATING THE LAW RELATING TO CONSUMER PROTECTIONS IN CERTAIN HOME LOANS.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 24-10.2(b) reads as rewritten:
"(b)	Notwithstanding the provisions of G.S. 58-57-35(b), it shall be unlawful for any lender in a consumer home loan to finance, directly or indirectly, any credit life, disability, or unemployment insurance, or any other life or health insurance premiums. Premiums for credit life, disability, or unemployment insurance, or any other life or health insurance in a consumer home loan shall be charged, collected, and paid only on a monthly basis and only for the term of the insurance coverage. Notwithstanding G.S. 58-57-40(g) or G.S. 58-57-45(f), a credit insurance company may charge the same level premium each month over the term of the insurance coverage under this subsection."
Section 2. This act becomes effective July 1, 2000.