§ 112.5. Policy requirements.
All policies of insurance issued in this Commonwealth insuring personal property through a transaction involving a debtor pledging personal property as collateral or personal property purchased under a credit transaction or their equivalent, the premium or cost of which is paid as an identifiable charge, in whole or in part by the debtor, shall be written for the full term for which the premium is charged and shall contain full and complete information on the following:
(1) Perils insured against.
(2) Amount of insurance covering the article purchased or offered as security or pledged as collateral.
(3) Rate charged for each $100 of insurance.
(4) Amount of the gross premium charged for each peril insured against when the premium is divisible and the aggregate premium charged for all perils insured against when the premium is not divisible.
(5) Effective date of insurance to be provided and the term of insurance to be provided.
(6) The personal property insurance premium shall be based upon actual cash value of the personal property purchased in a time sales finance transaction. In a consumer loan transaction, the personal property insurance premium shall be based upon the lesser of the amount of the cash proceeds or the actual cash value of the personal property offered as security or pledged as collateral. The amount of personal property insurance shall not include any finance charge, service charge, or similar charge or any fee including but not limited to those designated as service, notary, prothonotary, recording, or registration fees and shall not include any life insurance premium, accident and health insurance premium or personal property insurance premium.
(7) Memorandum or certificate of insurance or other evidence of insurance must be given each insured debtor within 30 days after an indebtedness is incurred and should be readily identifiable with the master policy in question and shall contain all conditions and exclusions of the master policy including but not limited to information designated in this section. At the time an indebtedness is incurred, the debtor shall receive a copy of the Security Agreement, Financing Statement, or similar document evidencing among other items personal property insurance coverage afforded the debtor. All changes in policy terms and conditions shall be evidenced by an endorsement forwarded directly by the insurer to both the debtor and creditor.
Source The provisions of this § 112.5 amended through December 21, 1979, effective December 22, 1979, 9 Pa.B. 4164. Immediately preceding text appears at serial page (21944).
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