(a) A charge for casualty, liability or credit insurance included in a consumer lease or added under subsection (c) of this section may not exceed the premium imposed by the insurer for the insurance. This subsection does not preclude:
(1) The imposition of rent charges on insurance charges capitalized in the lease; or
(2) The lessor's realization of commissions, experience rebates or similar compensation from the insurer.
(b) If insurance included in a consumer lease or added under subsection (c) of this section is canceled or terminated, a refund of unearned insurance premiums received by the holder in excess of one dollar, at the holder's option, must be:
(1) Refunded to the lessee; or
(2) Credited, together with the unearned portion of the rent charge applicable to the refunded premium, to the lessee's current obligation, the final maturing periodic payments or the lessee's obligation upon termination of the lease.
(c) If a lessee does not maintain insurance required under a consumer lease, the holder may purchase substitute insurance only against substantially the same risks, covering the interests of the lessee and the holder or the interest of either of them.
(d) An amount paid by a holder for substitute insurance under subsection (c) of this section and added to the lessee's obligation under the lease is subject to:
(1) A rent charge as if that amount were part of the adjusted capitalized cost, from the later of the effective date of the insurance or the date on which the holder notifies the lessee of the purchase of substitute insurance, its cost, and the effect on the payment schedule; and
(2) The repayment and default provisions of the lease.
(e) This section does not preclude a holder from pursuing any other remedy for default set forth in the lease or provided by law.
(P.A. 02-81, S. 25.)
History: P.A. 02-81 effective July 1, 2003.
Structure Connecticut General Statutes
Title 42 - Business, Selling, Trading and Collection Practices
Chapter 743aa - Consumer Leases
Section 42-390. - Short title: Consumer Leases Act.
Section 42-391. - Definitions.
Section 42-392. - Time of consummation. Expiration. Termination.
Section 42-393. - Scope. Exclusions. Sale incident to lease.
Section 42-394. - Characterization of lease. Applicability by agreement.
Section 42-396. - Waiver. Agreement to forego rights in settlement of claim.
Section 42-397. - Limitation on choice of law and venue.
Section 42-398. - Obligation of good faith.
Section 42-399. - Unconscionability.
Section 42-400. - Relation to Electronic Signatures in Global and National Commerce Act.
Section 42-401. - Advertising.
Section 42-402. - Availability of sample lease form.
Section 42-403. - Disclosure. Form of consumer lease. Copy to lessee.
Section 42-404. - Insurance. Insurance disclosures.
Section 42-405. - Notice to guarantor.
Section 42-407. - Payment or trade-in pending approval of lease. Refund or return.
Section 42-408. - Prohibited lease provisions.
Section 42-409. - Security interest restricted. Security deposit.
Section 42-410. - Late fees. Delinquency and default charges. Attorney's fees.
Section 42-411. - Assignment of lease. Preservation of lessee's claims and defenses.
Section 42-413. - Open-end consumer lease.
Section 42-414. - Limit on insurance charges. Termination or replacement of insurance.
Section 42-415. - Rebate or discount for referrals.
Section 42-416. - Limitation on supplier's disclaimer of implied warranty.
Section 42-417. - Liability for gap amount on total loss of goods.
Section 42-418. - Lessee's default. Right to cure.
Section 42-419. - Repossession. Application of realized value. Electronic self help.
Section 42-420. - Determining realized value.
Section 42-421. - Early termination liability.
Section 42-422. - Reporting early termination to consumer reporting agency.
Section 42-423. - Excess wear and tear. Excess mileage.
Section 42-424. - Private remedies.
Section 42-425. - Reliance on lessee's representations.
Section 42-426. - Statute of limitations.
Section 42-427. - Limitations on private remedies.
Section 42-428. - Civil liability of assignees.
Section 42-429. - Effect of violation on rights of parties. Single recovery.
Section 42-430. - Administrative enforcement.
Section 42-431. - Administration.