§ 5-4-301 — Property insurance

Colorado § 5-4-301

• Jurisdiction: Colorado
• Title 05: Consumer
• Art.: Insurance

Text

(1) A creditor may not contract for or receive a
separate charge for insurance against loss of or damage to property unless:

(a) The insurance covers a substantial risk of loss of or damage to property
related to the credit transaction;

(b) The amount, terms, and conditions of the insurance are reasonable in
relation to the character and value of the property insured or to be insured; and

(c) The term of the insurance is reasonable in relation to the terms of credit.

(2) The term of the insurance is reasonable if it is customary and does not
extend substantially beyond a scheduled maturity.

(3) A creditor may not contract for or receive a separate charge for
insurance against loss of or damage to property unless the amount financed
exclusive of charges for the insurance is one thousand dollars or more and the
value of the property is one thousand dollars or more.

Legislative History

Source: L. 2000: Entire article R&RE, p. 1232, � 1, effective July 1.