Session of 2000
HOUSE BILL No. 2647
By Committee on Insurance
9 AN ACT
concerning consumer credit insurance; relating to prohibiting
10 the financing of
credit insurance in certain home loans.
12 Be it enacted by the Legislature of the
State of Kansas:
1. (a) As used in this act, "consumer home loan" shall be
14 defined as a loan in which (1) the consumer
is a natural person; (2) the
15 debt is incurred by the consumer primarily
for personal, family or house-
16 hold purposes; and (3) the loan is secured
by a mortgage or deed of trust
17 upon real estate upon which there is
located or there is to be located a
18 structure or structures designed
principally for occupancy of from one to
19 four families which is or will be occupied
by the consumer as the con-
20 sumer's principal dwelling.
21 (b) It shall be
unlawful for any creditor in a consumer home loan to
22 finance, directly or indirectly, any
consumer credit insurance premiums,
23 or any other life, health, disability or
unemployment insurance premiums.
24 Insurance premiums calculated and paid on a
monthly basis shall not be
25 considered financed by the creditor.
26 Sec. 2. This act shall
take effect and be in force from and after its
27 publication in the statute book.