(1) Licensee shall not place credit life insurance nor credit disability insurance for its borrowers unless all applicable requirements of the Montana Insurance Code (Title 33, MCA) concerning licensing of agents are complied with. Any license acquired from the Commissioner of Insurance of the state of Montana must be conspicuously displayed in the office of licensee.

(2) Licensee shall not place any credit life or disability insurance with an insurer who has not been authorized to transact such insurance in this state under the provision of the Montana Insurance Code.

(3) Licensee shall not require any borrower or prospective borrower to purchase or contract for credit life or disability insurance as a condition precedent to granting any loan.

(4) Licensee may advise borrowers or prospective borrowers that such insurance is available at additional cost to the borrower.

(5) Licensee may advertise generally and publicly that credit life insurance and/or credit disability insurance is available to borrowers on loans of more than $300 in principal amount exclusive of charges for insurance premiums.

(6) Licensee shall not place credit life and/or credit disability insurance on any loan of $300 or less in principal amount exclusive of charges for insurance premiums.

(7) Licensee shall not make any loan including amounts advanced for insurance premiums that exceeds $1,000 in total amount advanced. A licensee who has been issued a supplementary license shall not make any loan including amounts advanced for insurance premiums that exceeds $2,500 in total amount advanced.

(8) The amount and term of credit life and/or credit disability insurance placed by a licensee must conform to the provisions of 33-21-202 and 33-21-203 , MCA.

(9) The individual insurance policy, the certificate of group insurance, the copy of the application for insurance, or the notice of proposed insurance, must be delivered to the borrower at the time the indebtedness is incurred, in accordance with the provisions of 33-21-204 , MCA, and all the provisions of this law relative to statements concerning the coverage provided must be strictly complied with.

(10) Licensee must have on file for each credit life and disability insurance transaction a signed statement from the borrower that procurement of such insurance was not made a condition precedent to the granting of the loan. Such statement may be a part of the loan statement, certificate of group insurance, or application for insurance, if such document is to be retained in borrower's file for the two years required by 32-5-307 , MCA. If a separate signed statement is used, such statement must be retained in borrower's file for the same period.

(11) Refunds of unearned premiums for credit life and disability insurance shall be computed in accordance with the Montana Insurance Code ( 32-21-206 , MCA) and regulations issued by the Commissioner of Insurance of the state of Montana.

(12) Licensee shall enter on each borrower's loan account record the amount of credit life insurance premium and credit disability insurance premium charged in connection with the loan.

(13) Before any credit life insurance or credit disability insurance premium is placed by licensee on any loan contract, licensee must file with the Consumer Loan Commissioner a statement containing the following information:

(a) the name and home address of the insurer or insurers with whom licensee intends to place such insurance;

(b) the rate of charge for premiums on such insurance to be collected from the borrower, expressed in terms of dollars and cents per month (or per year) per one hundred dollars of original balance of the loan;

(c) those borrowers who do not qualify for credit life or disability insurance because of advanced age or other stipulated reasons;

(d) the basis or schedule upon which refunds to borrowers of unearned premiums are to be computed.

(14) For the purpose of providing adequate information for the annual report of licensee required by 32-5-308 , MCA, licensee must keep accurate accounts to reflect the following:

(a) total net charges to borrowers for credit life insurance and credit disability insurance placed by licensee;

(b) total premiums remitted to insurers for such coverage;

(c) total commissions or dividends received by licensee from insurers;

(d) total of loans paid by insurers upon death of borrowers;

(e) total of payments on loans received from insurers under credit disability policies.