OAG 40-49.

• Case Date: August 26, 1940
• Court: Oregon

Oregon Attorney General Opinions 1940. OAG 40-49. 58OPINION NO. 40-49[20 Or. Op. Atty. Gen. 58]Provisions in contract for sale of furniture that in case of illness or unemployment payments will be suspended, and in case of death by accident, or destruction by fire of property, unpaid balance to be cancelled, is within insurance laws of Oregon as undertaking to indemnify59and insure against loss or damage in certain contingencies.August 26, 1940.Mr. Seth B. Thompson,Insurance Commissioner. Dear Mr. Thompson: Under date of August 23, 1940, you enclosed a "Home Security Plan Certificate" issued by a retail furniture company doing business within this state, and request my opinion as to whether or not the question of insurance is involved therein. Said certificate provides that in consideration of a conditional sales agreement for the purchase of certain merchandise described therein, the purchaser is entitled to the privileges of the said Home Security Plan, which provides as follows:

"1 IN CASE OF ILLNESS OF ---------------. No payments will be required to be made for the duration of such illness. Not exceeding 60 days.

"2 IN CASE OF UNEMPLOYMENT OF --------------- Payments will be automatically suspended during such period of unemployment, for a period of 60 days only from the commencing day of such period of unemployment and provided said unemployment is caused through no fault of the above.

"3 IN CASE OF DEATH BY ACCIDENT OF --------------- Any unpaid balance due on this account will be cancelled.

"4 IN CASE OF FIRE Which destroys any article or articles of merchandise purchased on this account, the balance due on such article or articles shall be cancelled.

"Payments due under the contract and the amount due pursuant to its terms must be paid up to date of the time of the request for suspension or cancellation, otherwise the above privileges are void and of no effect.

"Request for suspension or cancellation of payments must be made in writing or in person within one week from the date of such illness, unemployment, death or fire.

"THIS CERTIFICATE IS NOT TRANSFERABLE."

You also enclose copy of a newspaper advertisement issued by the said furniture company as part of an advertisement of its products. It reads as follows: "PLUS FREE! HOME SECURITY PROTECTION PAYMENTS CANCELLED In case of DEATH OR FIRE LOSS PAYMENTS...