16a-4-107.   (UCCC) Maximum charge by creditor for insurance.(1) Except as provided in subsection (2), if a creditor contracts for orreceives a separate charge for insurance, the amount charged to theconsumer for the insurance may not exceed the premium to be charged by theinsurer, as computed at the time the charge to the consumer is determined,conforming to any rate filings required by law and made by the insurer withthe commissioner of insurance.

      (2)   A creditor who provides consumer credit insurance in relation toopen end credit may calculate the charge to the consumer in each billingcycle by applying the current premium rate to the unpaid balance of debt inthe same manner as is permitted with respect to finance charges by theprovisions on finance charges for consumer credit sales pursuant to openend credit (section 16a-2-202).

      History:   L. 1973, ch. 85, § 67; Jan. 1, 1974.