Sec. 185.4. Forms of credit life insurance and credit accident and health insurance

(a) Credit life insurance and credit accident and health insurance policies which provide benefits differing in kind or character from those set forth in paragraphs (1) through (3) of this subdivision shall be deemed not to conform with section 3201(b) of the Insurance Law:

(1) individual policies of credit life insurance issued to debtors on the term plan;

(2) group policies of credit life insurance issued to creditors providing insurance upon the lives of debtors on the term plan which may include disability benefits commonly described as waiver of premiums, extended death benefit or total and permanent disability benefits, provided such additional disability and death benefits are provided at no additional charge to the debtor. The provisions of this paragraph pertaining to disability benefits shall not be deemed to preclude the continued issuance of disability benefits on debtors in this State, on a basis other than that specified herein, under a group policy of credit life insurance delivered outside this State and in force prior to October 1, 1958; provided, however, that issuance of such other disability benefits was permitted under the laws of the state in which such policy was delivered; and

(3) individual policies of credit accident and health insurance issued to debtors and group policies of credit accident and health insurance issued to creditors, in either case on a term plan providing:

(i) periodic benefits payable on any one of the following plans:

(a) after the 14th day of disability due to sickness or accident and retroactive to the first day of such disability;

(b) after the 14th day of disability due to sickness or accident;

(c) after the 30th day of disability due to sickness or accident and retroactive to the first day of such disability; or

(d) after the 30th day of disability due to sickness or accident;

(ii) lump sum benefits payable where the coverage is on open-end loans or charge plans and the maximum amount of insurance does not exceed $2,500 after the 90th day of disability due to sickness or accident; and

(iii) any other plan approved by the superintendent.

(b) Credit life insurance and credit accident and health insurance may be provided on each of two co-debtors.