No insurer may issue a policy covering security for a loan made under the regulatory authority of the Mini Code which exceeds the replacement values of the property given as security for the loan or covering security for such a loan. If the insured elects to cancel a policy sold in connection with such transaction, the insurer shall remit any premium refund due. No insurer may issue a policy covering security for a loan made under the regulatory authority of the Mini Code which exceeds the replacement values of the property given as security for the loan or covering security for such a loan. If the insured elects to cancel a policy sold in connection with such transaction, the insurer shall remit any premium refund due.

Author: Vincent R. Ledlow, Associate Counsel

Statutory Authority: Code of Ala. 1975, §27-2-17.

History: New Rule: June 12, 1992; effective June 22, 1992; Amended: October 15, 1996; effective April 1, 1997. Amended: July 23, 2002; effective August 2, 2002. Filed with LRS July 23, 2002. Rule is not subject to the Alabama Administrative Procedure Act.