KRS 304.19-204: Definition of gross debt -- Credit personal property insurance --

Restrictions and requirements.

(1) As used in this section, "gross debt" means the sum of the remaining payments

owed to a creditor by a debtor.

(2) For credit personal prop erty insurance sold in conjunction with a closed -end credit

transaction, an insurer shall not issue the insurance:

(a) In an amount that exceeds the gross debt of the underlying credit transaction;

or

(b) With a term that exceeds the scheduled term of the underlying credit

transaction.

(3) Credit personal property insurance shall cover a substantial risk of loss of, or

damage to, the collateral pledged or secured in the credit transaction.

(4) An insurer shall not:

(a) Require the bundling of other credit i nsurance coverages with the purchase of

credit personal property insurance; or

(b) Use gross debt in determining credit personal property insurance premiums.

(5) A debtor shall have the choice to purchase credit personal property insurance

separate from other credit insurance coverage.