(1) Except as provided in subsection (2) of this section, if a creditor contracts
for or receives a separate charge for insurance, the amount charged to the consumer
for the insurance may not exceed the premium to be charged by the insurer as computed
at the time the charge to the consumer is determined conforming to any rate filings
required by law and made by the insurer with the commissioner of insurance.
(2) A creditor who provides consumer credit insurance in relation to a revolving credit
account may calculate the charge to the consumer in each billing cycle by applying
the current premium rate to:
(a) The average daily unpaid balance of the debt in the cycle;
(b) The unpaid balance of the debt or a median amount within a specified range of
unpaid balances of debt on approximately the same day of the cycle. The day of the cycle need not be the day used in calculating the finance charge,
but the specified range shall be the range used for that purpose; or
(c) The unpaid balances of the amount financed calculated according to the actuarial
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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