Charge for insurance in connection with a deferral, refinancing, or consolidation - duplicate charges.

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(1) A creditor may not contract for or receive a separate charge for insurance in connection with a deferral described in section 5-2-204, a refinancing described in section 5-2-205, or a consolidation described in section 5-2-206 unless:

  1. The consumer agrees at or before the time of the deferral, refinancing, or consolidation that the charge may be made;

  2. The consumer is or is to be provided with insurance for an amount or a term, orinsurance of a kind, in addition to that to which the consumer would have been entitled had there been no deferral, refinancing, or consolidation;

  3. 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 under section 5-4-108; and

  4. The charge does not exceed the amount permitted under section 5-4-107.

(2) A creditor may not contract for or receive a separate charge for insurance that duplicates insurance with respect to which the creditor has previously contracted for or received a separate charge.

Source: L. 2000: Entire article R&RE, p. 1229, § 1, effective July 1.

Editor's note: This section is similar to former § 5-4-110, as it existed prior to 2000.


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