§ 25A-17. Additional charges for insurance.
§ 25A‑17. Additionalcharges for insurance.
(a) As to revolvingcharge account contracts defined in G.S. 25A‑11, in addition to thefinance charges permitted in G.S. 24‑11(a), a seller in a consumer creditsale may contract for and receive additional charges or premiums (i) forinsurance written in connection with any consumer credit sale, against loss ofor damage to property securing the debt pursuant to G.S. 25A‑23, provideda clear, conspicuous and specific statement in writing is furnished by the sellerto the buyer setting forth the cost of the insurance if obtained from orthrough the seller and stating that the buyer may choose the insurer throughwhich the insurance is obtained; (ii) for credit life, credit accident andhealth, or credit unemployment insurance, written in connection with anyconsumer credit sale, provided the insurance coverage is not required by theseller and this fact is clearly disclosed to the buyer, and any buyer desiringsuch insurance coverage gives affirmative indication of such desire afterdisclosure of the cost of such insurance.
(b) As to revolvingcharge account contracts defined in G.S. 25A‑11, insurance that isrequired by a seller and is not an additional charge permitted by subsection(a) of this section, shall be included in the finance charge as computedaccording to G.S. 24‑11(a).
(c) As to consumercredit installment sale contracts defined in G.S. 25A‑12, in addition tothe finance charges permitted in G.S. 25A‑15, a seller in a consumercredit sale may contract for and receive additional charges or premiums (i) forinsurance written in connection with any consumer credit sale, for loss of ordamage to property or against liability arising out of the ownership or use ofproperty, provided a clear, conspicuous and specific statement in writing isfurnished by the seller to the buyer setting forth the cost of the insurance ifobtained from or through the seller and stating that the buyer may choose theperson through which the insurance is to be obtained; (ii) for credit life,credit accident and health, or credit unemployment insurance, written inconnection with any consumer credit sale, provided the insurance coverage isnot required by the seller and this fact is clearly and conspicuously disclosedin writing to the buyer; and any buyer desiring such insurance coverage givesspecific dated and separately signed affirmative written indication of suchdesire after receiving written disclosure to him of the cost of such insurance.(1971, c. 796, s. 1; 1993, c. 226, s. 15.)