KRS 304.19-040: Amounts of credit life insurance.

(1) The initial amount of credit life insurance shall not exceed the total amount

repayable under the contract of indebtedness and, where an indebtedness is

repayable in substantially equal installments, the amount of insurance shall at no

time exceed the sche duled or actual amount of unpaid indebtedness, whichever is

greater, provided that in the case of a group policy the amount of insurance may be

reduced annually or at more frequent intervals, by a level percentage.

(2) Notwithstanding subsection (1) of thi s section, insurance on agricultural credit

transaction commitments not exceeding one (1) year in duration may be written up

to the amount of the loan commitment, on a nondecreasing or level term plan.

(3) Notwithstanding subsection (1) of this section, in surance on educational credit

transaction commitments may be written for the amount of the portion of such

commitment that has not been advanced by the creditor.