16a-4-110.   (UCCC) Charge for insurance in connection with a refinancing orconsolidation; duplicate charges.(1) A creditor may not contract for or receive a separate charge forinsurance 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 ofrefinancing or consolidation that the charge may be made;

      (b)   the consumer is or is to be provided with insurance for an amount ora term, or insurance of a kind, in addition to that to which he would havebeen entitled had there been no refinancing orconsolidation;

      (c)   the consumer receives a refund or credit on account of any unexpiredterm of existing insurance in the amount that would be required if theinsurance 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 forinsurance which duplicates insurance with respect to which the creditor haspreviously contracted for or received a separate charge.

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