16a-4-107. (UCCC) Maximum charge by creditor for insurance.
16a-4-107
16a-4-107. (UCCC) Maximum charge by creditor for insurance.
(1) Except as provided in subsection (2), if a creditor contracts for or
receives a separate charge for insurance, the amount charged to the
consumer for the insurance may not exceed the premium to be charged by the
insurer, 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 with
the commissioner of insurance.
(2) A creditor who provides consumer credit insurance in relation to
open end credit may calculate the charge to the consumer in each billing
cycle by applying the current premium rate to the unpaid balance of debt in
the same manner as is permitted with respect to finance charges by the
provisions on finance charges for consumer credit sales pursuant to open
end credit (section 16a-2-202).
History: L. 1973, ch. 85, § 67; Jan. 1, 1974.