Section 424.206. Deferral, refinancing and consolidation agreements.

 

(1)  The creditor may not receive a separate charge for insurance in connection with a deferral ( s. 422.204 ), a refinancing ( s. 422.205 ) or a consolidation ( s. 422.206 ) unless:

(a) The customer agrees in writing at the time of deferral, refinancing or consolidation that a specific charge may be made;

(b) The customer is to be provided with insurance for an amount or a term, or insurance of a kind, in addition to that to which the customer would have been entitled had there been no deferral, refinancing or consolidation;

(c) The customer receives a refund or credit on account of any unexpired term of existing insurance in the amount that would be required if the insurance were terminated ( s. 424.205 ); and

(d) The charge does not exceed the amount permitted by this chapter ( s. 424.204 ).

(2)  A creditor may not contract for or receive a separate charge for insurance which duplicates insurance with respect to which the creditor has previously contracted for or received a separate charge.

(3)  A violation of this section is subject to the provisions of s. 425.303 .

1971 c. 239 ; 1991 a. 316 .