(1) A creditor may not contract for or receive a separate charge for insurance against loss of or damage to property unless:
The insurance covers a substantial risk of loss of or damage to property related to thecredit transaction;
The amount, terms, and conditions of the insurance are reasonable in relation to thecharacter and value of the property insured or to be insured; and
The term of the insurance is reasonable in relation to the terms of credit.
The term of the insurance is reasonable if it is customary and does not extend substantially beyond a scheduled maturity.
A creditor may not contract for or receive a separate charge for insurance against lossof or damage to property unless the amount financed exclusive of charges for the insurance is one thousand dollars or more and the value of the property is one thousand dollars or more.
Source: L. 2000: Entire article R&RE, p. 1232, § 1, effective July 1.
Editor's note: This section is similar to former § 5-4-301, as it existed prior to 2000.