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Credit Contracts and Consumer Finance Act 2003

Consumer credit contracts - Payments - Prepayments

53: Termination of consumer credit insurance contract

You could also call this:

"What happens to your insurance when you pay off your loan"

Illustration for Credit Contracts and Consumer Finance Act 2003

If you pay off your consumer credit contract in full, your consumer credit insurance contract will end. This is unless your insurance contract also covers other credit contracts. It also won't end if it gives you other benefits or insurance cover.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM213105.

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Topics:
Money and consumer rights > Consumer protectionMoney and consumer rights > Banking and loans
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54: Creditor's loss arising from full prepayment, or

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Part 2Consumer credit contracts
Payments: Prepayments

53Termination of consumer credit insurance contract

  1. A consumer credit insurance contract financed under a consumer credit contract is terminated on the full prepayment of the consumer credit contract unless the consumer credit insurance contract—

  2. provides insurance cover in connection with 1 or more other credit contracts; or
    1. otherwise provides a benefit to, or insurance cover for, the debtor.