Charge for Insurance in Connection With a Deferment,

Refinancing or Consolidation; Duplicate Charges.

(1)A creditor may not contract for or receive a separate charge for insurance in connection with a deferment (§ 2204 or § 3204), a refinancing (§ 2205 or § 3205), or a consolidation (§ 2206 or § 3206), unless:

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

(b)coverage is provided or to be provided to the debtor, as to term, amount or kind of insurance, in addition to that to which he would have been entitled had there been no deferment, refinancing COL120106 CH. 4 INSURANCE or consolidation;

(c)the debtor receives the refund or credit on account of any unexpired term of existing insurance that would be appropriate as to amount if the insurance were terminated (§ 4108); and

(d)the charge does not exceed the amount permitted by this Chapter (§ 4107).

(2)A creditor may not contract for or receive a separate charge for insurance which duplicates insurance with respect to which the creditor has previously contracted for or received a separate charge.