4 Colo. Code Regs. § 902-1-3
Current through Register Vol. 47, No. 16, August 25, 2024
Rule 4 CCR 902-1-3 - Permissible Additional Charges - Single Premium Non-Credit Insurance(a) A creditor may sell single premium non-credit insurance in connection with a consumer credit transaction provided that:(1) The insurance coverage in not a factor in the approval of credit and this fact is clearly disclosed in writing to the consumer.(2) In order to obtain the insurance the consumer gives specific affirmative written indication of the consumer's desire to purchase the insurance after receiving written disclosure of the cost.(3) The insurance policy allows the insured consumer thirty (30) days to cancel the policy, without cost.(4) If the insured does cancel the policy within the thirty (30) day period the premium shall be returned directly to the insured.(5) If the insured makes a valid claim the benefits shall be paid directly to the insured, the designated beneficiaries, or the estate, but not to the creditor.(b) If the insurance sold meets both the definition of non-credit insurance in part (c) of this rule and all of the five conditions listed above, the charge for such insurance may be excluded as a permissible additional charge from the finance charge.(c) "Non-credit insurance" means insurance conferred on the consumer, if the benefits are of value to the consumer and if the charges are reasonable in relation to the benefits, and are of a type that is not for credit.Repealed effective November 1, 2000Rules 14 eff. 10/01/2008.Rule14 repealed eff. 07/30/2009.Rule 16 (1st un - numbered paragraph); eff.11/29/2010.