16a-4-301.   (UCCC) Property insurance.(1) A creditor may not contract for or receive a separate charge forinsurance against loss of or damage to property unless

      (a)   the insurance covers a substantial risk of loss of or damage toproperty related to the credit transaction;

      (b)   the amount, terms, and conditions of the insurance are reasonable inrelation to the character and value of the property insured or to beinsured; and

      (c)   the term of the insurance is reasonable in relation to the terms ofcredit.

      (2)   The term of the insurance is reasonable if it is customary and doesnot extend substantially beyond a scheduled maturity.

      (3)   A creditor may not contract for or receive a separate charge forinsurance against loss of or damage to property unless property ispurchased pursuant to a credit card or in a transaction pursuant to openend credit, or unless the amount financed exclusive of charges for theinsurance is $900 or more, and thevalue of theproperty is $900 or more.

      History:   L. 1973, ch. 85, § 76;L. 1999, ch. 107, § 24; July 1.