Short Answer:
Not applicable. VSI is not permitted in connection with the origination of a motor vehicle retail installment sale.
Explanation:
Alabama Banking Department regulations provide that single interest insurance is permitted only after the debtor has been notified in writing of the cancellation or lack of dual interest coverage. Ala. State Banking Dept. Regs. § 155-2-2-.12(10)(c). The debtor must then be afforded a minimum of 15 days to procure a dual interest policy, and if that policy is obtained, any single interest coverage written by the creditor will be canceled at that time. Ala. State Banking Dept. Regs. § 155-2-2-.12(10)(c). Thus, in motor vehicle retail installment sales, VSI is not permitted at consummation.
Last Revision*:
September 1, 2006 Show Redlined Changes
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