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735
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HARRY HUGHES, Governor
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12-909.
(A) (1) A BANK CREDIT GRANTOR MAY NOT REQUIRE A CONSUMER
BORROWER TO BE INSURED FOR A REVOLVING CREDIT PLAN UNDER A LIFE,
HEALTH, ACCIDENT, HEALTH AND ACCIDENT, OR OTHER CREDIT OR
INSURANCE POLICY, WHETHER GROUP OR INDIVIDUAL, BUT THE BANK
CREDIT GRANTOR MAY OFFER INSURANCE COVERAGE FOR VOLUNTARY
PURCHASE BY ANY CONSUMER BORROWER AND MAY FINANCE THE PREMIUMS
FOR THE INSURANCE.
(2) IF A CONSUMER BORROWER'S OUTSTANDING UNPAID
INDEBTEDNESS UNDER THE PLAN IS SECURED BY AN INTEREST IN REAL OR
PERSONAL PROPERTY, A BANK CREDIT GRANTOR MAY REQUIRE THE BORROWER
TO OBTAIN INSURANCE, FROM AN INSURER ACCEPTABLE TO THE BANK
CREDIT GRANTOR, AGAINST LOSS OF OR DAMAGE TO THE PROPERTY, OR
AGAINST ANY LIABILITY ARISING OUT OF THE OWNERSHIP OR USE OF THE
PROPERTY AND MAY FINANCE THE PREMIUMS FOR THE INSURANCE.
(B) (1) IN THE CASE OF A BORROWER OTHER THAN A CONSUMER
BORROWER, A BANK CREDIT GRANTOR MAY REQUIRE THE BORROWER TO
OBTAIN INSURANCE, FROM AN INSURER ACCEPTABLE TO THE BANK CREDIT
GRANTOR, UNDER A LIFE, HEALTH, ACCIDENT HEALTH AND ACCIDENT, OR
OTHER CREDIT OR OTHER PERMISSIBLE INSURANCE POLICY, WHETHER GROUP
OR INDIVIDUAL.
(2) IF THE BORROWER'S OUTSTANDING UNPAID INDEBTEDNESS
UNDER THE PLAN IS SECURED BY AN INTEREST IN REAL OR PERSONAL
PROPERTY THE BANK CREDIT GRANTOR MAY REQUIRE THE BORROWER TO
OBTAIN INSURANCE, FROM AN INSURER ACCEPTABLE TO THE BANK CREDIT
GRANTOR, AGAINST LOSS OF OR DAMAGE TO THE PROPERTY, OR AGAINST
ANY LIABILITY ARISING OUT OF THE OWNERSHIP OR USE OF THE PROPERTY
AN MAY FINANCE THE PREMIUMS FOR THE INSURANCE.
12-909.
(A) IN CONNECTION WITH A PLAN ESTABLISHED FOR A CONSUMER
BORROWER:
(1) THE PURCHASE OF CREDIT LIFE, CREDIT ACCIDENT AND
HEALTH, CREDIT DISABILITY, INVOLUNTARY UNEMPLOYMENT BENEFIT, AND
SIMILAR COVERAGES" IS OPTIONAL WITH THE CONSUMER BORROWER; AND
(2) THE PURCHASE OF PROPERTY INSURANCE, TITLE
INSURANCE, AND CREDIT LOSS INSURANCE FROM AN INSURER OF THE
BORROWER'S CHOICE MAY BE REQUIRED IF THE LOAN IS SECURED.
(B) THE PROVISIONS OF THIS SECTION DO NOT ALTER OR MODIFY
RIGHTS, PRIVILEGES, OR RESTRICTIONS HERETOFORE EXISTING BETWEEN
THE CREDIT GRANTOR AND A BORROWER OTHER THAN A CONSUMER BORROWER.
(C) PREMIUMS FOR ANY INSURANCE COVERAGE PERMITTED BY THIS
SECTION ARE NOT INTEREST OR FINANCE CHARGES UNDER THE PLAN.
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