806 KAR 19:050. Combined health and dismemberment restrictions

Section 1. An insurer shall not write or issue any health and dismemberment insurance policy in connection with a credit transaction subject to the provisions of KRS Chapter 304, Subtitle 19 that, alone or in conjunction with the policy, is expressly written as security for a loan. Unless the debt is extinguished prior to maturity at the end of the claim, the insurer shall grant the debtor the choice to receive a refund of premiums paid for the unused insurance or to continue the coverage afforded by the unused policy.