A creditor may contract for and receive a separate charge for insurance in connection with a deferral, a refinancing, or a consolidation if:

(1) the debtor agrees at or before the time of the deferral, refinancing, or consolidation that the charge may be made;

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Terms Used In Utah Code 70C-6-108

  • Creditor: means :
              (4)(a)(i) a party:
                   (4)(a)(i)(A) who regularly extends consumer credit that is subject to a finance charge or is payable by written agreement in more than four installments, not including a down payment; and
                   (4)(a)(i)(B) to whom the obligation is initially payable, either on the face of the note or contract, or by agreement when there is no note or contract;
              (4)(a)(ii) an issuer of a credit card that extends either open-end credit or credit that:
                   (4)(a)(ii)(A) is not subject to a finance charge; and
                   (4)(a)(ii)(B) is not payable by written agreement in more than four installments; and
              (4)(a)(iii) an issuer of a credit card that extends closed-end credit that:
                   (4)(a)(iii)(A) is subject to a finance charge; or
                   (4)(a)(iii)(B) is payable by written agreement in more than four installments. See Utah Code 70C-1-302
(2) the insurance is not required by the creditor as a condition of granting the deferral, refinancing, or consolidation, unless the insurance is of a type which the creditor may lawfully require a debtor to obtain in connection with an extension of credit;
(3) the terms and conditions of the insurance to be provided comply with all requirements of this chapter; and
(4) the debtor receives an appropriate refund or credit on account for any unexpired term of existing insurance which is duplicated to any degree by the insurance to be provided in connection with the deferral, refinancing, or consolidation.