424.301 Restrictions on property insurance.

137 words·~1 min read·/wi/chapter-424/424-301

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

(1)A creditor may not contract for a separate charge or receive a separate charge for insurance against loss of or damage to property in which the creditor holds a security interest or to property leased under a motor vehicle consumer lease unless all of the following conditions are met:

(a)The insurance covers a substantial risk of loss or damage to property which is allowable collateral under s. 422.417 for the credit transaction.

(b)The amount of the insurance does not exceed any of the following:

1. The actual cash value or stated value of any motor vehicle, manufactured home, or mobile home in which the creditor holds a security interest.

2. The cash value or replacement value of any property in which the creditor holds a purchase money security interest.