(a) All credit life insurance and credit disability insurance sold shall be evidenced by an individual policy or, in the case of group insurance, by a certificate of insurance. The individual policy or group certificate of insurance shall be delivered to the debtor.
(b) In addition to other requirements of law, each individual policy or group certificate of credit life insurance and credit disability insurance shall set forth the name and home office address of the insurer, the identity by name or otherwise of the person or persons insured, the rate or amount of payment, if any, by the debtor separately in connection with credit life insurance and credit disability insurance, and a description of the coverage, including any exceptions, limitations, or restrictions, and shall state that the benefits shall be paid to the creditor to reduce or extinguish the unpaid indebtedness and, whenever the amount of insurance may exceed the unpaid indebtedness, that any excess shall be payable to a beneficiary, other than the creditor, named by the debtor or to his or her estate.
(c)
(1) An individual policy, group certificate of insurance for credit life insurance and credit disability insurance, or a related form or document delivered to the debtor shall fully disclose to the debtor that purchase of credit life insurance and credit disability insurance is voluntary and is not required as a condition for the extension of credit.
(2) A credit life insurance and credit disability insurance policy or related form or document shall be filed with and approved by the Insurance Commissioner before it may be used in this state.
(3)
(A) The commissioner's approval of a credit life insurance and credit disability insurance policy or related form or document shall be prima facie evidence that the language of the policy is not contrary to the Arkansas Insurance Code.
(B) There shall be no private cause of action challenging the validity or propriety of a policy or related form approved by the commissioner.
(C) Any action or process challenging or questioning the validity of a credit life insurance and credit disability insurance policy or related form approved by the commissioner shall be brought only in the State Insurance Department under applicable provisions of the Arkansas Insurance Code or under procedures established by the Arkansas Administrative Procedure Act, § 25-15-201 et seq.
(d) The sale of credit life insurance or credit disability insurance shall not create a fiduciary relationship between the insurer and the insured.
(e) The insured's signature on an individual policy or group certificate of insurance of credit life insurance and credit disability insurance or a related document provided to the insured, evidencing the insured's election to purchase insurance in connection with a loan, shall be prima facie evidence of the insured's voluntary election to purchase the insurance.