Colorado § 5-4-107 Maximum charge by creditor for insurance

Colorado Statutes

§ 5-4-107 — Maximum charge by creditor for insurance

Colorado·Title 05 Consumer·Art. Insurance

(1)Except as provided in subsection (2) of this section, 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 a revolving credit account may calculate the charge to the consumer in each billing cycle by applying the current premium rate to:

(a)The average daily unpaid balance of the debt in the cycle;

(b)The unpaid balance of the debt or a median amount within a specified range of unpaid balances of debt on appro

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(1) Except as provided
in subsection (2) of this section, 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 a
revolving credit account may calculate the charge to the consumer in each billing
cycle by applying the current premium rate to:

(a) The average daily unpaid balance of the debt in the cycle;

(b) The unpaid balance of the debt or a median amount within a specified
range of unpaid balances of debt on approximately the same day of the cycle. The
day of the cycle need not be the day used in calculating the finance charge, but the
specified range shall be the range used for that purpose; or

(c) The unpaid balances of the amount financed calculated according to the
actuarial method.

Colorado § 5-4-107 (Maximum charge by creditor for insurance) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.