§14A-4-110. Charge for insurance in connection with a deferral,

198 words·~1 min read·/ok/title-14a-consumer-credit-code/14a-4-110

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

refinancing, or consolidation - Duplicate charges.

(1)A creditor may not contract for or receive a separate charge for insurance in connection with a deferral (Section 2-204 or Section 3-204), a refinancing (Section 2-205 or Section 3-205), or a consolidation (Section 2-206 or Section 3-206), unless

(a)the debtor agrees at or before the time of the

deferral, refinancing, or consolidation that the

charge may be made;

(b)the debtor 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 he would have been entitled

had there been no deferral, refinancing, or

consolidation;

(c)the debtor 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 (Section 4-108); and

(d)the charge does not exceed the amount permitted by

this article (Section 4-107).

(2)A creditor may not contract for or receive a separate charge for insurance which duplicates insurance with respect to which the creditor has previously contracted for or received a separate charge. Added by Laws 1969, c. 352, § 4-110, eff. July 1, 1969.