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Can you summarize 9 LARS Code Book II, Code Title XII, Chapter 2, Part VI?
LOUISIANA CONSUMER CREDIT LAW > INSURANCE
Short Summary
This legal document, part of the Louisiana Revised Statutes, falls under the Louisiana Consumer Credit Law and governs the requirement of insurance in consumer credit transactions. It applies to extenders of credit and consumers in Louisiana. In consumer credit transactions, the extender of credit may request or require the consumer to provide credit life insurance, credit dismemberment insurance, and credit health and accident insurance as additional security for the contract or agreement. The extender of credit must disclose the option to purchase such insurance coverage to the consumer. The cost of the insurance, if required, is considered a portion of the credit service charge or loan finance charge. The document also specifies the maximum premium rates for different types of credit life insurance and credit health and accident insurance. It further allows the offering of credit insurance authorized by the Louisiana Insurance Code in connection with revolving loan accounts, lender credit card accounts, revolving charge accounts, or seller credit card accounts. Duplicate or substantially similar credit insurance coverage for a single peril or loss in a consumer credit transaction is prohibited. The document also covers property insurance in consumer credit agreements, allowing extenders of credit to request or require consumers to insure property involved in a contract or agreement. The cost of the insurance can be included as a separate charge in the contract or agreement. The insurance and premiums must be reasonable in relation to the amount, term, conditions, hazards, and value of the property. The insurance should not cover unusual or exceptional risks not typically included in policies issued to the general public. If a consumer fails to maintain the required property insurance or provide timely notice of purchase or renewal, the creditor may purchase insurance on the customer’s property, with the premiums added to the outstanding balance of the customer’s debt. The document also addresses the cancellation of insurance when a consumer credit transaction is paid in full, with the option for the consumer to request to keep the insurance in force for credit life insurance and property insurance other than contents insurance. The extender of credit may apply any refund for unearned insurance premiums towards payment of the premium for replacement insurance or towards the unpaid balance of the consumer credit transaction. Overall, this document sets out the requirements and regulations related to insurance in consumer credit transactions in Louisiana.
Whom does it apply to?
Extenders of credit and consumers in Louisiana
What does it govern?
Insurance requirements in consumer credit transactions
What are exemptions?
No specific exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Louisiana