PURPOSE: This regulation describes what coverages may be sold under a limited credit license. This regulation is adopted pursuant to the provisions of section 374.045, RSMo and implements section 375.018.4(5), RSMo.

1. (1) No credit life insurance may be sold by a licensee exempted from examination by section 375.018.5(4), RSMo which—

   1. (A) Is issued upon the life of any person other than the debtor(s);
   2. (B) Exceeds the term of indebtedness it secures except as provided in section 385.035, RSMo; or

   3. (C) Exceeds at any time the amount of the indebtedness it secures except when—

      1. 1. Caused by voluntary prepayment of a

portion of the loan;

1. 2. The insurance is written on agricul-

tural credit transaction commitments;

1. 3. The insurance is written on educa-

tional credit transaction commitments; or

1. 4. Insurance is written on residential

real estate-secured credit transaction commitments. In addition, no credit life insurance that contains a conversion privilege may be sold by the licensee.

1. (2) No credit accident and sickness insurance may be sold unless that policy does not exceed the amount or term of the indebtedness it secures issued only upon the health of the debtor.

2. (3) Property insurance under section 375.018.5(4), RSMo may be written under license provided it meets the following provisions:

   1. (A) Covers only that tangible personal property pledged as collateral for a loan except as otherwise permitted by section 408.140, RSMo;
   2. (B) Provides only physical damage coverage in the case of automobiles, for example, collision and comprehensive;
   3. (C) Provides only the standard fire policy with extended coverage in the case of collateral other than automobiles; and
   4. (D) Provides coverage no greater in amount than the total amount of the underlying indebtedness.

AUTHORITY: sections 374.045, RSMo Supp. 1993 and 375.018.5(4), RSMo 1986.* This rule was previously filed as 4 CSR 190- 12.040. Original rule filed Dec. 20, 1974, effective Dec. 30, 1974. Amended: Filed May 13, 1975, effective June 20, 1975. Amended: Filed Aug. 16, 1977, effective Dec. 11, 1977. Amended: Filed Feb. 1, 1989, effective July 1, 1989. Amended: Filed Feb. 5, 1990, effective May 1, 1990. *Original authority: 374.045, RSMo 1967, amended 1993; 375.018.5(4), RSMo 1965, amended 1967, 1981, 1984, 1985. 20 CSR 700-1