Insurance included in retail installment transactions--restrictions.
365.080. 1. The amount, if any, included in any retail installmenttransaction for insurance, if a separate identified charge is made for theinsurance, which insurance may be purchased by the holder of the contract,shall not exceed the applicable premiums chargeable in accordance with therates approved by the department of insurance, financial institutions andprofessional registration of this state where the rates are required by law tobe approved by the department. All insurance shall be written by an insurancecompany authorized to do business in this state and all policies written inthis state shall be countersigned by a duly licensed resident agent authorizedto engage in the insurance business in this state, unless otherwise providedby law. A buyer may be required to provide insurance on the motor vehicle athis own cost for the protection of the seller or holder, as well as the buyer,but the insurance shall be limited to insurance against substantial risk ofloss, damage or destruction of the motor vehicle. Any other insurance,including insurance providing involuntary unemployment coverage, may beincluded in a retail installment transaction at the buyer's expense only ifcontracted for voluntarily by the buyer. If the insurance for which theidentified charge is made insures the safety or health of the buyer or hisinterest in the motor vehicle and is purchased by the holder, it shall besubject to the limitations provided for in the regulations promulgated andissued by the director pursuant to the provision of subsection 1 of section365.060. The holder shall within thirty days after the execution of theretail installment contract send or cause to be sent to the buyer a policy orcertificate of insurance, clearly setting forth the amount of the cost of thepolicy or certificate of insurance, the kinds of insurance, and, if a policy,all the terms, exceptions, limitations, restrictions and conditions of thecontract of insurance, or, if a certificate, a summary of the certificate.The seller shall not decline existing insurance written by an insurancecompany authorized to do business in this state and the buyer shall have theprivilege of purchasing insurance from an agent or broker of his own selectionand of selecting his insurance company; except, that the insurance companyshall be acceptable to the holder, and further, that the inclusion of the costof the insurance in the retail installment contract when the buyer selects hisagent, broker or company, shall be optional with the seller.
2. If any insurance is canceled, or the premium adjusted, any refund ofthe insurance premium received by the holder shall be credited to the finalmaturing installments of the contract except to the extent applied towardpayment for similar insurance protecting the interests of the buyer and theholder or either of them.
3. The amount of any life insurance shall not exceed the amount of thetotal unpaid balance from time to time; except, that where the buyer'sobligation is repayable in payments which are not substantially equal inamount, the insurance may be level term insurance in an amount which shall notexceed by more than five dollars the time balance as determined undersubsection 6 of section 365.070.
4. Nothing in this chapter shall be construed to prohibit the sale of adeficiency waiver addendum, guaranteed asset protection, extended servicecontract, or other similar products purchased at the time of sale, as part ofa retail sale transaction involving any motor vehicle, or including the costtherefor within a retail installment transaction, provided the requirements ofsection 365.070 are met.
(L. 1963 p. 466 § 8, A.L. 1989 H.B. 615 & 563, A.L. 2004 S.B. 1233, et al.)
Insurance included in retail installment transactions--restrictions.
365.080. 1. The amount, if any, included in any retail installmenttransaction for insurance, if a separate identified charge is made for theinsurance, which insurance may be purchased by the holder of the contract,shall not exceed the applicable premiums chargeable in accordance with therates approved by the department of insurance, financial institutions andprofessional registration of this state where the rates are required by law tobe approved by the department. All insurance shall be written by an insurancecompany authorized to do business in this state and all policies written inthis state shall be countersigned by a duly licensed resident agent authorizedto engage in the insurance business in this state, unless otherwise providedby law. A buyer may be required to provide insurance on the motor vehicle athis own cost for the protection of the seller or holder, as well as the buyer,but the insurance shall be limited to insurance against substantial risk ofloss, damage or destruction of the motor vehicle. Any other insurance,including insurance providing involuntary unemployment coverage, may beincluded in a retail installment transaction at the buyer's expense only ifcontracted for voluntarily by the buyer. If the insurance for which theidentified charge is made insures the safety or health of the buyer or hisinterest in the motor vehicle and is purchased by the holder, it shall besubject to the limitations provided for in the regulations promulgated andissued by the director pursuant to the provision of subsection 1 of section365.060. The holder shall within thirty days after the execution of theretail installment contract send or cause to be sent to the buyer a policy orcertificate of insurance, clearly setting forth the amount of the cost of thepolicy or certificate of insurance, the kinds of insurance, and, if a policy,all the terms, exceptions, limitations, restrictions and conditions of thecontract of insurance, or, if a certificate, a summary of the certificate.The seller shall not decline existing insurance written by an insurancecompany authorized to do business in this state and the buyer shall have theprivilege of purchasing insurance from an agent or broker of his own selectionand of selecting his insurance company; except, that the insurance companyshall be acceptable to the holder, and further, that the inclusion of the costof the insurance in the retail installment contract when the buyer selects hisagent, broker or company, shall be optional with the seller.
2. If any insurance is canceled, or the premium adjusted, any refund ofthe insurance premium received by the holder shall be credited to the finalmaturing installments of the contract except to the extent applied towardpayment for similar insurance protecting the interests of the buyer and theholder or either of them.
3. The amount of any life insurance shall not exceed the amount of thetotal unpaid balance from time to time; except, that where the buyer'sobligation is repayable in payments which are not substantially equal inamount, the insurance may be level term insurance in an amount which shall notexceed by more than five dollars the time balance as determined undersubsection 6 of section 365.070.
4. Nothing in this chapter shall be construed to prohibit the sale of adeficiency waiver addendum, guaranteed asset protection, extended servicecontract, or other similar products purchased at the time of sale, as part ofa retail sale transaction involving any motor vehicle, or including the costtherefor within a retail installment transaction, provided the requirements ofsection 365.070 are met.
(L. 1963 p. 466 § 8, A.L. 1989 H.B. 615 & 563, A.L. 2004 S.B. 1233, et al.)
Insurance included in retail installment transactions--restrictions.
365.080. 1. The amount, if any, included in any retail installmenttransaction for insurance, if a separate identified charge is made for theinsurance, which insurance may be purchased by the holder of the contract,shall not exceed the applicable premiums chargeable in accordance with therates approved by the department of insurance, financial institutions andprofessional registration of this state where the rates are required by law tobe approved by the department. All insurance shall be written by an insurancecompany authorized to do business in this state and all policies written inthis state shall be countersigned by a duly licensed resident agent authorizedto engage in the insurance business in this state, unless otherwise providedby law. A buyer may be required to provide insurance on the motor vehicle athis own cost for the protection of the seller or holder, as well as the buyer,but the insurance shall be limited to insurance against substantial risk ofloss, damage or destruction of the motor vehicle. Any other insurance,including insurance providing involuntary unemployment coverage, may beincluded in a retail installment transaction at the buyer's expense only ifcontracted for voluntarily by the buyer. If the insurance for which theidentified charge is made insures the safety or health of the buyer or hisinterest in the motor vehicle and is purchased by the holder, it shall besubject to the limitations provided for in the regulations promulgated andissued by the director pursuant to the provision of subsection 1 of section365.060. The holder shall within thirty days after the execution of theretail installment contract send or cause to be sent to the buyer a policy orcertificate of insurance, clearly setting forth the amount of the cost of thepolicy or certificate of insurance, the kinds of insurance, and, if a policy,all the terms, exceptions, limitations, restrictions and conditions of thecontract of insurance, or, if a certificate, a summary of the certificate.The seller shall not decline existing insurance written by an insurancecompany authorized to do business in this state and the buyer shall have theprivilege of purchasing insurance from an agent or broker of his own selectionand of selecting his insurance company; except, that the insurance companyshall be acceptable to the holder, and further, that the inclusion of the costof the insurance in the retail installment contract when the buyer selects hisagent, broker or company, shall be optional with the seller.
2. If any insurance is canceled, or the premium adjusted, any refund ofthe insurance premium received by the holder shall be credited to the finalmaturing installments of the contract except to the extent applied towardpayment for similar insurance protecting the interests of the buyer and theholder or either of them.
3. The amount of any life insurance shall not exceed the amount of thetotal unpaid balance from time to time; except, that where the buyer'sobligation is repayable in payments which are not substantially equal inamount, the insurance may be level term insurance in an amount which shall notexceed by more than five dollars the time balance as determined undersubsection 6 of section 365.070.
4. Nothing in this chapter shall be construed to prohibit the sale of adeficiency waiver addendum, guaranteed asset protection, extended servicecontract, or other similar products purchased at the time of sale, as part ofa retail sale transaction involving any motor vehicle, or including the costtherefor within a retail installment transaction, provided the requirements ofsection 365.070 are met.
(L. 1963 p. 466 § 8, A.L. 1989 H.B. 615 & 563, A.L. 2004 S.B. 1233, et al.)
