Effective - 28 Aug 1989
408.280. Insurance purchased to secure retail time contract, regulation. — 1. The amount, if any, included for insurance, if a separate identified charge is made for the insurance, which insurance may be purchased by the seller or other person holding a retail time contract or account under a retail charge agreement, shall not exceed the applicable premium chargeable in accordance with the rates approved by the department of commerce and insurance of this state where such rates are required by law to be approved by such department. All insurance shall be written by an insurance company authorized to do business in this state and all policies written in this state shall be countersigned by a duly licensed resident agent authorized to engage in the insurance business in this state, unless otherwise provided by law. A buyer may be required to provide insurance on the goods at his own cost for the protection of the seller or other person holding a retail time contract or account under a retail charge agreement, as well as the buyer, but such insurance shall be subject to limitations provided for in regulations promulgated and issued by the director of finance pursuant to the provisions of subsection 3 of this section. An additional charge may be made for insurance written in connection with the retail time contract which provides involuntary unemployment coverage.
2. The seller or other person holding a retail time contract or account under a retail charge agreement shall, within thirty days after provision for any insurance is agreed to by the buyer, send or cause to be sent to the buyer a policy or policies or certificate or certificates of insurance, clearly setting forth the amount of the premium, the kind or kinds of insurance, the coverage and, if a policy, all the terms, exceptions, limitations, restrictions and conditions of the contract or contracts of insurance, or, if a certificate, a summary of the certificate.
3. The amount of any life insurance shall not exceed the amount of the total unpaid balance from time to time under a retail time contract or under a retail charge agreement, except that where the buyer's obligation under a retail time contract is repayable in payments which are not substantially equal in amount, such insurance may be level term insurance in an amount which shall not exceed by more than five dollars the time balance as determined under subsection 5 of section 408.260. The director of finance, or such agency or agencies as may exercise the powers and duties now performed by such director, shall issue regulations providing for and governing the types and limits of all other insurance and the issuance of policies in connection with retail time transactions. Nothing in this section shall alter or amend the statutes of this state relating to insurance or affect the powers of the director of the department of commerce and insurance under such statutes.
4. The seller shall not decline existing insurance written by an insurance company authorized to do business in this state and the buyer shall have the privilege of purchasing insurance from an agent or broker of his own selection and of selecting his insurance company, except that the insurance company shall be acceptable to the holder, which acceptance shall not be unreasonably or arbitrarily withheld, and further, that the inclusion of the cost of the insurance premium in the retail time contract when the buyer selects his agent, broker or company shall be optional with the seller.
5. If any insurance is cancelled, or the premium adjusted, any refund of the insurance premium received by the holder shall be credited to the final maturing payments of the contract except to the extent applied toward payment for similar insurance protecting the interests of the buyer and the holder or either of them.
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(L. 1961 p. 638 § 5, A.L. 1989 H.B. 615 & 563)
Structure Missouri Revised Statutes
Title XXVI - Trade and Commerce
Chapter 408 - Legal Tender and Interest
Section 408.010 - Silver a legal tender.
Section 408.015 - Definitions.
Section 408.020 - When no rate of interest is agreed upon, nine percent allowed as legal interest.
Section 408.031 - Fee in lieu of interest may be charged on loan — exception.
Section 408.032 - Recording fees.
Section 408.035 - Unlimited interest, when allowed.
Section 408.050 - Excess interest paid recoverable with costs and attorney fee.
Section 408.070 - Usurious interest — security agreement invalid.
Section 408.081 - Validity of certain existing contract not to be affected, when.
Section 408.083 - Credit contracts, prepayment before maturity, computation of interest.
Section 408.090 - Demand loans where only securities are pledged not subject to usury laws.
Section 408.092 - Attorney fees, enforcement of credit agreements, limitations.
Section 408.095 - Charging interest of more than two percent per month a misdemeanor, exceptions.
Section 408.096 - Loan arrangement, excess fee prohibited for certain transactions — penalty.
Section 408.100 - Applicability of section — rate of interest.
Section 408.105 - Precomputed loans, extensions, fee, limitations.
Section 408.110 - Short title — applicability of sections 408.120 to 408.190.
Section 408.120 - Interest computed and paid, how.
Section 408.145 - Fees for credit cards issued in contiguous states.
Section 408.160 - False advertising prohibited.
Section 408.175 - Interest rate when maturity of note or contract accelerated.
Section 408.178 - Deferral of monthly loan payments, fee authorized for certain loans.
Section 408.180 - Authority of director to verify interest rates charged.
Section 408.190 - Certain loans exempt from sections 408.120 to 408.180, and 408.200.
Section 408.200 - Borrower not to be indebted on two or more contracts with same lender, when.
Section 408.210 - Assignment of wages or compensation — excess over loan deemed interest.
Section 408.213 - Changes to certain sections remedial only.
Section 408.231 - Definitions.
Section 408.232 - Rates and terms.
Section 408.233 - Additional charges authorized.
Section 408.234 - Collateral — prepayment rights, method of computation.
Section 408.235 - Director may examine certain lenders.
Section 408.237 - Applicability of sections 408.231 to 408.241.
Section 408.241 - Prepayment fee, second mortgage loans, allowed when.
Section 408.250 - Definitions.
Section 408.280 - Insurance purchased to secure retail time contract, regulation.
Section 408.290 - Retail charge agreement — form — delivery to buyer — contents.
Section 408.320 - Buyer may pay retail time contract debt before maturity — refund of charges.
Section 408.340 - Applicability to prior transactions.
Section 408.350 - Waiver of provisions void.
Section 408.360 - Citation of law.
Section 408.370 - Violation, penalty — effect on time and other charges — correction.
Section 408.375 - Retail installment agreement, deemed signed or accepted, when.
Section 408.400 - Definitions.
Section 408.410 - Exempt transactions.
Section 408.415 - Chapter 400 is modified by provisions of sections 408.400 to 408.415.
Section 408.455 - Variable rate agreements subject to certain provisions.
Section 408.505 - Term of loans, charges permitted, repayment, return check charge.
Section 408.506 - Report to the general assembly, contents.
Section 408.510 - Licensure of consumer installment lenders — interest and fees allowed.
Section 408.512 - Loans by traditional installment loan lenders.
Section 408.550 - Discrimination prohibited — damages recoverable.
Section 408.551 - Applicability of sections 408.551 to 408.562 — credit transaction defined.
Section 408.552 - Enforceability of default provisions.
Section 408.553 - Recovery limitation.
Section 408.554 - Notice of default, contents, form, delivery.
Section 408.557 - Notice required before deficiency action may be commenced.
Section 408.558 - Security interests not to be taken, when.
Section 408.560 - Unenforceable provisions in note or credit contract.
Section 408.562 - Damages recoverable for violation.
Section 408.570 - Definitions.
Section 408.575 - Denial of loans prohibited, when, reasons for.
Section 408.585 - Limitation on requirements of sections 408.570 to 408.600.
Section 408.590 - Division directors, report to governor and department director, contents.
Section 408.595 - Financial institutions to make other annual report, contents.
Section 408.675 - Citation of law — definitions.
Section 408.677 - Government access to records, when — requirements.
Section 408.680 - Financial institution may not disclose, exceptions, requirements.
Section 408.682 - Customer authorization, requirements.
Section 408.683 - Subpoena, government may obtain records with, when — procedure — notice required.
Section 408.685 - Delay of notice, allowed when — postdisclosure notice, form of.
Section 408.686 - Challenge to subpoena — procedure, appeals.
Section 408.689 - Transfer of records to additional agency, allowed when — notice.
Section 408.690 - Nonprohibited disclosure activities.
Section 408.692 - Law not applicable to government authority, when — procedure.
Section 408.693 - Fee paid to financial institution, amount, how determined.
Section 408.695 - Statute of limitations.
Section 408.697 - Injunctive relief, allowed when.
Section 408.699 - Statute of limitations, tolled when.
Section 408.700 - Subpoena issued under authority of grand jury, records, use of.
Section 408.800 - Definitions.
Section 408.805 - Savings promotion program authorized, conditions.
Section 408.810 - Compliance with federal American Savings Promotion Act.
Section 408.815 - Programs not gambling, gaming, lottery, raffle, or sweepstake.