HAR §16-6-3. Substitution

When a creditor requires credit life insurance, credit disability insurance, or both, as additional security for an indebtedness, the debtor shall be given the option of furnishing the required amount of insurance through existing policies of insurance owned or controlled by the debtor or procuring and furnishing the required coverage through any insurer authorized to transact insurance business in this State. If this section is applicable, the debtor shall be informed by the creditor of the right to provide alternative coverage before the transaction is completed. The creditor shall give the borrower written notice that the borrower is free to procure the required insurance coverage from any insurance company authorized to do business in the State as required by section 479-2, HRS. [Eff 6/22/81; comp 12/16/88] (Auth: HRS §§431:2-201, 431:10B-113) (Imp: HRS §431:10B-107)