16a-4-106

Chapter 16a.--CONSUMER CREDIT CODE

Part 1 INSURANCE IN GENERAL
Article 4.--INSURANCE

     
16a-4-106.   (UCCC) Unconscionability.
(1) In applying the provisions of this act on unconscionability
(sections 16a-5-108 and 16a-6-111) to a separate charge for insurance,
consideration shall be given, among other factors, to

     
(a)   potential benefits to the consumer including the satisfaction of his
obligations;

     
(b)   the creditor's need for the protection provided by the insurance;
and

     
(c)   the relation between the amount and terms of credit granted and the
insurance benefits provided.

     
(2)   If consumer credit insurance otherwise complies with this article
and other applicable law, neither the amount nor the term of the insurance
nor the amount of a charge therefor is unconscionable.

     
History:   L. 1973, ch. 85, § 66; Jan. 1, 1974.