1. A. Effective date: Creditor-placed insurance shall become effective on the latest of the following dates:

   1. (1) the date of the credit transaction;
   2. (2) the date prior coverage, including prior creditor-placed insurance coverage, lapsed;
   3. (3) for personal property, one year before the date on which the charge for creditor-placed insurance is made to the debtor’s account; or
   4. (4) a later date provided for in the agreement between the creditor and insurer.

2. B. Termination date: Creditor-placed insurance shall terminate on the earliest of the following dates:

   1. (1) the date other acceptable insurance becomes effective, subject to the debtor providing acceptable evidence of the other insurance to the creditor;
   2. (2) the date the collateralized property is repossessed, unless the property is returned to the debtor within 10 days of the repossession;
   3. (3) the date the collateralized property is damaged beyond repair;
   4. (4) the date the debt is completely extinguished; or
   5. (5) an earlier date specified in the individual policy or certificate of insurance.
3. C. Policy term: The term of a creditor-placed insurance certificate shall not exceed 12 months.

[13.18.3.9 NMAC – Rp, 13.18.3.9 NMAC, 7/24/2018]