415:19-b Debt-Related Mortgage Disability and Mortgage Accidental Death Insurance. –
A group of individuals may be insured under a mortgage disability or mortgage accidental death policy issued to a creditor, or to the trustee of a creditor, which creditor or trustee shall be deemed the policyholder, to insure debtors of the creditor or creditors, subject to the following requirements:
I. The debtors eligible for insurance under the policy shall be all the debtors of the creditor or creditors whose indebtedness is repayable in installments, or all of any class or classes thereof determined by conditions pertaining to the indebtedness or to the purchase giving rise to the indebtedness. The policy may provide that the term "debtors" shall include the debtors of one or more subsidiary corporations, and the debtors of one or more affiliated corporations, proprietors, or partnerships if the business of the policyholder and of such affiliated corporations, proprietors, or partnerships is under common control through stock ownership, contract, or otherwise.
II. The premium for the policy shall be paid by the policyholder, either from the creditor or creditor's funds, or from charges collected from the insured debtors, or from both.
III. The amount of indemnity payable with respect to any debtor shall at no time exceed the amount owed by the debtor which is repayable in installments to the debtor's creditor.
IV. The insurance shall be payable to the policyholder. Such payment shall reduce or extinguish the unpaid indebtedness of the debtor to the extent of such payment.
V. All the provisions of RSA 417, and specifically RSA 417:4, XVI, shall apply to any policy issued under this section.