70C-6-108 - Charge for insurance in connection with a deferral, refinancing, or consolidation -- Duplicate charges.
70C-6-108. Charge for insurance in connection with a deferral, refinancing, orconsolidation -- Duplicate charges.
A creditor may contract for and receive a separate charge for insurance in connection witha deferral, a refinancing, or a consolidation if:
(1) the debtor agrees at or before the time of the deferral, refinancing, or consolidationthat the charge may be made;
(2) the insurance is not required by the creditor as a condition of granting the deferral,refinancing, or consolidation, unless the insurance is of a type which the creditor may lawfullyrequire a debtor to obtain in connection with an extension of credit;
(3) the terms and conditions of the insurance to be provided comply with all requirementsof this chapter; and
(4) the debtor receives an appropriate refund or credit on account for any unexpired termof existing insurance which is duplicated to any degree by the insurance to be provided inconnection with the deferral, refinancing, or consolidation.
Enacted by Chapter 159, 1985 General Session