9-A M.R.S. § 4-301
This is the official text of 9-A M.R.S. § 4-301, part of Maine’s M.R.S — part of the compiled statutory law of Maine, published by the state as "M.R.S." Browse the sections below, each linked to its official government source.
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9-A §4-301. Property insurance
Official statutory text
The following provisions apply to insurance provided or to be provided in relation to a consumer credit transaction: [PL 1997, c. 315, §6 (NEW).]
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; [PL 1973, c. 762, §1 (NEW).] 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; [PL 1973, c. 762, §1 (NEW).] C. The term of the insurance is reasonable in relation to the term of credit. [PL 1973, c. 762, §1 (NEW).] [PL 1975, c. 368, §1 (AMD).]
2. The term of the insurance is reasonable if it is customary and does not extend substantially beyond a scheduled maturity. [PL 1973, c. 762, §1 (NEW).]
3. With respect to a transaction, except pursuant to open-end credit, 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 $1,400 or more and the cash price of the item or property is $1,400 or more. [PL 1997, c. 727, Pt. B, §15 (AMD).]
4. With respect to a transaction pursuant to open-end credit, the administrator may adopt rules consistent with the principles set out in subsections 1 and 2 prescribing whether, and the conditions under which, a creditor may contract for or receive a separate charge for insurance against loss of or damage to property. [PL 1975, c. 368, §2 (NEW).]
5. [PL 1997, c. 727, Pt. B, §16 (RP).]
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; [PL 1973, c. 762, §1 (NEW).] 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; [PL 1973, c. 762, §1 (NEW).] C. The term of the insurance is reasonable in relation to the term of credit. [PL 1973, c. 762, §1 (NEW).] [PL 1975, c. 368, §1 (AMD).]
2. The term of the insurance is reasonable if it is customary and does not extend substantially beyond a scheduled maturity. [PL 1973, c. 762, §1 (NEW).]
3. With respect to a transaction, except pursuant to open-end credit, 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 $1,400 or more and the cash price of the item or property is $1,400 or more. [PL 1997, c. 727, Pt. B, §15 (AMD).]
4. With respect to a transaction pursuant to open-end credit, the administrator may adopt rules consistent with the principles set out in subsections 1 and 2 prescribing whether, and the conditions under which, a creditor may contract for or receive a separate charge for insurance against loss of or damage to property. [PL 1975, c. 368, §2 (NEW).]
5. [PL 1997, c. 727, Pt. B, §16 (RP).]
Status: in_force · Read it on the official government site
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