(1) If the creditor adds identifiable insurance charges or premiums for credit insurance to the total amount of the indebtedness and makes any direct or indirect finance, carrying, credit or service charge whatever to the debtor in connection with such insurance charge, the creditor is deemed to have loaned the premium or insurance charge to the debtor and the premium or insurance charge is deemed collected for the insurer as soon as it is added to the indebtedness, in which event, the creditor must remit and the insurer shall collect on a single premium basis only. A creditor may remit and an insurer may collect premiums for credit life insurance on a monthly balance basis. The charge for the premium shall be shown separately from the balance of the loan and any payment received by the creditor shall first be applied to pay the credit life insurance premium.   Only in the event no payment is made or the payment made is insufficient to satisfy the premium charge, may the creditor add the unpaid premium to the loan and remit it to the insurers.   If the premium charged by the insurer for group credit life insurance is on the basis of the outstanding balances of indebtedness at risk at each premium due date, the amount charged to the debtor for such insurance shall not exceed the substantial mathematical equivalent of the premiums to be charged for that insurance by the insurer, as computed at the time the charge to the debtor is determined.   Schedules of such permissible charges shall be provided to the creditor with instructions on the manner and method such schedules must be used to effect compliance with the law.