5-4-110. Charge for insurance in connection with a deferral, refinancing, or
181 words·~1 min read·
/co/title-5-consumer-credit-code/article-4-insurance/5-4-110·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
consolidation - duplicate charges.
(1)A creditor may not contract for or receive a separate charge for insurance in connection with a deferral described in section 5-2-204, a refinancing described in section 5-2-205, or a consolidation described in section 5-2-206 unless:
(a)The consumer agrees at or before the time of the deferral, refinancing, or consolidation that the charge may be made;
(b)The consumer is or is to be provided with insurance for an amount or a term, or insurance of a kind, in addition to that to which the consumer would have been entitled had there been no deferral, refinancing, or consolidation;
(c)The consumer receives a refund or credit on account of any unexpired term of existing insurance in the amount that would be required if the insurance were terminated under section 5-4-108; and
(d)The charge does not exceed the amount permitted under section 5-4-107.
(2)A creditor may not contract for or receive a separate charge for insurance that duplicates insurance with respect to which the creditor has previously contracted for or received a separate charge.