New Jersey Statutes Title 17. Corporations and Institutions for Finance and Insurance 17 § 16V-7

a. (1) A creditor that places, or a person that receives commissions or fees arising out of, collateral protection insurance shall not be liable to any debtor, guarantor or other party for the placement of collateral protection insurance, except:

(2) If the creditor does not substantially comply with the provisions of this act in purchasing collateral protection insurance:

(3) A creditor is not, by virtue of this act, required to purchase collateral protection insurance or otherwise insure collateral.

(1) for the purchase or placement of collateral protection insurance in substantial compliance with the terms of this act;

(2) for not purchasing collateral protection insurance;

(3) as a result of the amount or level of coverage, geographical scope of coverage or deductible associated with collateral protection insurance purchased by the creditor;

(4) because the creditor purchases collateral protection insurance that protects only the interest of the creditor or less than all of the interest of the debtor; or

(5) nondisclosure of commissions or fees included in costs.

e. (1) A creditor that fails to provide any notice to a debtor required pursuant to section 3 of P.L.1999, c. 44 (C.17:16V-3) shall be liable to an administrative penalty not exceeding $25,000.

(2) A creditor that willfully violates any requirement of P.L.1999, c. 44 (C.17:16V-1 et al.) shall be liable to an administrative penalty not exceeding $50,000.

(3) The administrative penalty authorized pursuant to this section may be recovered in a summary proceeding in accordance with the “Penalty Enforcement Law of 1999,” P.L.1999, c. 274 (C.2A:58-10 et seq.).