1. (a) Credit accident and health insurance means insurance on a debtor in connection with a specific loan or other credit transaction in this State to provide indemnity to the creditor for installment payments on the indebtedness becoming due while the debtor is disabled.
2. (b) Credit insurance, as referred to in sections 3201(b)(4), 4216(b)(3) and 4235(c)(1)(E) of the Insurance Law means credit life insurance and/or credit accident and health insurance.
3. (c) Credit life insurance means insurance on the life of a debtor in connection with a specific loan or other credit transaction in this State to provide payment to a creditor in the event of the death of the debtor.

4. (d) Credit transactions secured by real estate mortgages shall include first mortgage loans, second or junior mortgage loans and home equity loans as defined in this subdivision:

   1. (1) First mortgage loan means a loan made to a natural person or persons and secured by a first lien on real estate, or by a first lien on a proprietary lease to a dwelling unit in a housing cooperative and on the share(s) of stock or other interest in such housing cooperative allocable to such dwelling unit.
   2. (2) Second or junior mortgage loan means a loan to a natural person or persons and subject to the lien of one or more prior mortgages on real estate, or on a proprietary lease to a dwelling unit in a housing cooperative and on the share(s) of stock or other interest in such housing cooperative allocable to such dwelling unit.
   3. (3) Home equity loan means any loan to a natural person or persons, secured by either a first mortgage or a second or junior mortgage, and where the proceeds are not used to acquire title to the real estate or ownership interest in the proprietary lease to a dwelling unit in a housing cooperative and on the share(s) of stock or other interest in a housing cooperative allocable to such dwelling unit.
5. (e) Credit unemployment insurance means insurance, as authorized by section 1113(a)(24) of the Insurance Law, on a debtor in connection with a specific loan or other credit transaction in this State to provide indemnity to the creditor for installment payments on the indebtedness becoming due while the debtor is unemployed.

6. (f) Creditor means a lender, lessor, or vendor to any of whom payment of an underlying indebtedness is arranged through a credit transaction, or any successor to the right, title or interest of any such lender, vendor or lessor; an affiliate, associate or subsidiary of any of the foregoing or any director, officer or employee of any of them, or any other person in any way associated with any of them, and a trustee, trustees or agent designated by two or more creditors as provided in section 185.5(i) of this Part; creditor includes an intended creditor pursuant to a program. Creditor also includes a mortgage loan servicer who may be a creditor for the purpose of taking delivery of one or more policies of group credit insurance if, with respect to each group, it is demonstrated to the superintendent pursuant to sections 4216(b)(14) and 4235(c)(1)(M) of the Insurance Law that:

   1. (1) the group of debtors has the common economic relationship of making payments of principal and interest to the servicer;
   2. (2) the premiums charged for the coverage are reasonable in relation to the benefit provided; and
   3. (3) the issuance of such policies would result in economies of acquisition, and would be actuarially sound.
7. (g) Debtor means a borrower of money (or guarantor of such borrower), lessee or purchaser, any of whom is party to a credit transaction; or an intended borrower pursuant to a program.
8. (h) Disability means the inability of the insured to engage in his or her own occupation or any occupation for which he or she is qualified, as defined in the policy. In addition, disability may be defined in terms of the insured's earned income.
9. (i) Identifiable charge means the amount a creditor charges a debtor or collects from the debtor specifically for credit life insurance or credit accident and health insurance in addition to any other stated charges, including interest or discount, permitted by the New York State Banking and Personal Property Laws. Additionally, it will be considered that the debtor is charged a specific amount for the insurance, if there is a differential in finance, interest, service or other similar charge made to debtors who are in like circumstances, except for their insured or non-insured status.
10. (j) Indebtedness means the amount payable by a debtor to a creditor in connection with a loan or other credit transaction, including rentals payable under the lease of real or personal property.
11. (k) Mortgage loan servicer means the person responsible for the process of receiving any scheduled periodic payments from a borrower pursuant to the terms of any mortgage loan, including amounts for escrow accounts under section 10 of the Real Estate Settlement Procedures Act, 12 USCS sections 2601 et seq., and premiums for credit insurance authorized by this Part, and making the payments of principal and interest and such other payments with respect to the amounts received from the borrower to the owner of the loan or other third parties as may be required pursuant to the terms of the mortgage loan documents or servicing contract (including the person who makes or holds a loan, if such person also services the loan).
12. (l) Net unpaid indebtedness means the amount required to liquidate the scheduled indebtedness, including any delinquent payments provided for in the policy, but exclusive of any unearned interest.
13. (m) An open-end loan or charge plan is defined as a line of credit loan, a revolving charge plan or any other self-replenishing credit arrangement between the creditor and one of its customers which may be drawn upon from time to time by the customer without renegotiating the lending agreement. The customer may repay the full outstanding balance at any time, or a specified minimum portion of the indebtedness.
14. (n) Package means credit life insurance, credit accident and health insurance and credit unemployment insurance offered in any combination in such manner that the debtor may only elect either the entire combination or no coverage.
15. (o) Period of insurance means the time for which each premium has provided coverage.
16. (p) Preexisting condition means an illness, disease or physical condition for which a debtor received medical advice, consultation or treatment during a specified period immediately prior to the effective date of coverage (exclusive of acute infectious diseases of the upper respiratory tract and other diseases generally considered medically as not affecting future health); or the existence of symptoms which would ordinarily cause a prudent person to seek diagnosis, care or treatment.
17. (q) Program means a program for defraying the cost of attendance of a student at a college or university or at an elementary or secondary school providing education required for minors, which program includes provision for immediate periodic payments by the parent or guardian of such student and a loan commitment to such parent or guardian by a financial institution, or by or on behalf of a college or university or such elementary or secondary school to defray the cost of attendance at such college or university or elementary or secondary school in excess of the accumulated periodic payments by the parent or guardian.
18. (r) Refund liability means the amount that must be refunded to the debtor at any time if the insurance is terminated.
19. (s) Small loans means those loans authorized and defined by section 352 of the New York State Banking Law.
20. (t) Term of insurance means the time during which a loss can occur for which benefits are payable.
21. (u) Vendor means seller of real and/or personal property or services.

For the purpose of this Part: