Guam § 4202 - Amount of Consumer Credit Insurance.

§ 4202. Amount of Consumer Credit Insurance.

(1) Except as provided in Subsection (2):

(a) in the case of credit life insurance, the amount of insurance

may not initially exceed the debt and, if the debt is payable in

installments, may not at any time exceed the greater of the

scheduled or actual amount of the debt; or

(b) in the case of any other consumer credit insurance, the total

amount of periodic benefits payable may not exceed the total of

scheduled unpaid installments of the debt, and the amount of any

periodic benefit may not exceed the original amount of debt divided

by the number of periodic installments in which it is payable.

(2) If consumer credit insurance is provided in connection with a

revolving charge account or revolving loan account, or in connection

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with a commitment to grant credit in the future, the amounts payable as

insurance benefits may be reasonably commensurate with the total from

time to time of the amount of debt and the amount of any commitment. If

the debt or commitment is primarily for an agricultural purpose, and

there is no regular schedule of payments, the amounts payable as

insurance benefits may equal the total of the initial amount of debt and

the amount of any commitment.

(3) The excess amount of a charge for insurance provided for in

agreements in violation of this Section is an excess charge for the

purposes of the provisions of the Chapter on Remedies and Penalties

(Chapter 5) as to the effect of violations on rights of parties (§ 5201) and

of the provisions of the Chapter on Administration (Article 6) as to

administrative enforcement orders (§ 6108) and as to civil actions by the

Administrator (§ 6113).