Guam § 4201 - Term of Insurance.

§ 4201. Term of Insurance.

(1) Consumer credit insurance provided by a creditor may be subject

to the furnishing of evidence of incurability satisfactory to the insurer.

Whether or not such evidence is required, the term of the insurance shall

commence no later than at the time when the debtor becomes obligated

to the creditor or on the date the debtor applies for the insurance,

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whichever is later, except as follows:

(a) if any required evidence of incurability is not furnished

until more than thirty (30) days after the term would otherwise

commence, the term may commence on the date when the insurer

determines the evidence to be satisfactory; and

(b) if the creditor provides insurance not previously provided

covering debts previously created, the term may commence on the

effective date of the policy.

(2) The originally scheduled term of the insurance shall extend at

least until the due date of the last scheduled payment of the debt except

as follows:

(a) if the insurance relates to a revolving charge account or

revolving loan account, the term need extend only until the payment

of the debt under the account and may be sooner terminated after at

least thirty (30) days' notice to the debtor; and

(b) if the debtor is advised in writing that the insurance will be

written for a specified shorter time, the term need extend only until

the end of the specified time.

(3) The term of the insurance shall not extend more than fifteen (15)

days after the originally scheduled due date of the last scheduled

payment of the debt unless it is extended without additional cost to the

debtor or as an incident to a deferment, refinancing or consolidation.