Sec. 1. 9-A MRSA §4-104, sub-§3, as amended by PL 1981, c. 151, is further amended to read:

3. In any consumer credit sale or any supervised loan, except pursuant to open-end credit sales, a creditor may not contract for or receive a separate charge for consumer credit insurance providing for accident and health coverage unless there is a minimum payment of $30 per month or a loan duration of at least 18 months. All consumer credit insurance providing for life, accident and health coverage in any consumer credit sale or any supervised loan shall , at the option of the consumer, must provide for a waiting period of 30 days or more. If a creditor offers consumer credit insurance providing for life, accident and health coverage for which a separate charge may be received, the creditor shall offer the consumer the option of purchasing consumer credit insurance which that does not pay a benefit for the 30-day waiting period and shall disclose to the consumer the cost thereof in accordance with section 2-501, subsection 2, paragraph B.

SUMMARY

This bill eliminates the restriction on credit card companies of having to charge at least $30 per month in order to provide consumer credit insurance providing for life, accident and health coverage. This bill also allows a consumer in a credit sale or supervised loan providing credit insurance for life, accident and health coverage to opt for a waiting period of 30 days or more.