16a-4-107. (UCCC) Maximum charge by creditor for insurance. (1) Except as provided in subsection (2), 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 open end credit may calculate the charge to the consumer in each billing cycle by applying the current premium rate to the unpaid balance of debt in the same manner as is permitted with respect to finance charges by the provisions on finance charges for consumer credit sales pursuant to open end credit (section 16a-2-202).
History: L. 1973, ch. 85, ยง 67; January 1, 1974.
Structure Kansas Statutes
Chapter 16a - Consumer Credit Code
16a-4-103 (UCCC) Definition: "Consumer credit insurance."
16a-4-104 (UCCC) Creditor's provision of and charge for insurance; excess amount of charge.
16a-4-105 (UCCC) Conditions applying to insurance to be provided by creditor.
16a-4-106 (UCCC) Unconscionability.
16a-4-107 (UCCC) Maximum charge by creditor for insurance.
16a-4-108 (UCCC) Refund or credit required; amount.
16a-4-109 (UCCC) Existing insurance; choice of insurer; notice of option.
16a-4-111 (UCCC) Cooperation between administrator and commissioner of insurance.
16a-4-112 (UCCC) Administrative action of commissioner of insurance.
16a-4-201 (UCCC) Term of insurance.
16a-4-202 (UCCC) Amount of insurance.
16a-4-203 (UCCC) Filing and approval of rates and forms.
16a-4-301 (UCCC) Property insurance.
16a-4-302 (UCCC) Insurance on creditor's interest only.