16a-4-110

Chapter 16a.--CONSUMER CREDIT CODE

Part 1 INSURANCE IN GENERAL
Article 4.--INSURANCE

     
16a-4-110.   (UCCC) Charge for insurance in connection with a refinancing or
consolidation; duplicate charges.
(1) A creditor may not contract for or receive a separate charge for
insurance in connection with a refinancing
(section 16a-2-504) or a consolidation (section 16a-2-505), unless:

     
(a)   The consumer agrees at or before the time of
refinancing or consolidation that the charge may be made;

     
(b)   the consumer 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 refinancing or
consolidation;

     
(c)   the consumer 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 16a-4-108); and

     
(d)   the charge does not exceed the amount permitted by this article
(section 16a-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.

     
History:   L. 1973, ch. 85, § 70;
L. 1993, ch. 200, § 13; Jan. 1, 1994.