HB541 Summary

• Amends Section 5-19-20 of the Code of Alabama 1975 to authorize creditors to offer credit life and disability and involuntary unemployment insurance as joint coverage in consumer credit transactions involving more than one party.

• Permits creditors to continue offering these insurance products as single coverage while adding the option of joint coverage when credit is extended to multiple parties in a single transaction.

• Insurance charges remain subject to existing limitations: cannot exceed permitted premiums, must not exceed the approximate amount and term of the credit, and are optional for debtors.

• Becomes effective on the first day of the third month following passage and gubernatorial approval.