IOWA CODE
TITLE XIII. COMMERCE
SUBTITLE 3. MONEY AND CREDIT
CHAPTER 537. CONSUMER CREDIT CODE
ARTICLE 2. FINANCE CHARGES AND RELATED PROVISIONS
PART 5. CONSUMER CREDIT TRANSACTIONS: OTHER CHARGES AND
MODIFICATIONS
§ 537.2506 Advances to perform covenants of consumer
1. If the agreement with respect to a consumer credit transaction other than a consumer lease or a consumer rental purchase agreement contains covenants by the consumer to perform certain duties pertaining to insuring or preserving collateral and the creditor pursuant to the agreement pays for performance of the duties on behalf of the consumer, the creditor may add the amounts paid to the debt. Within a reasonable time after advancing any sums, the creditor shall state to the consumer in writing the amount of the sums advanced, any charges with respect to this amount, and any revised payment schedule and, if the duties of the consumer performed by the creditor pertain to insurance, a brief description of the insurance paid for by the creditor including the type and amount of coverages. No further information need be given.
2. A finance charge may be made for sums advanced pursuant to subsection 1 at a rate not exceeding the rate of finance charge required to be stated to the consumer pursuant to law in the disclosure statement required by this chapter and the Truth in Lending Act, except that with respect to open end credit the amount of the advance may be added to the unpaid balance of the debt and the creditor may make a finance charge not exceeding that permitted by section 537.2202 or 537.2402, as applicable.
IOWA CODE
TITLE XIII. COMMERCE
SUBTITLE 1. INSURANCE AND RELATED REGULATION
CHAPTER 515F. CASUALTY INSURANCE
DIVISION I. REGULATION OF RATES
§ 515F.5A Collateral insurance and forced placement
1. The commissioner shall review all collateral insurance forms and rates to assure that the rates are not excessive in comparison to the benefits provided to consumers.
2. The commissioner may adopt by rule procedures and restrictions to protect consumers from abusive practices in forced placement or collateral insurance. Rules may include, but are not limited to, the following:
a. Notice requirements, to assure that consumers have an opportunity to exercise reasonable choice in the placement, of a collateral insurance policy.
b. A prohibition or limitation on the receipt of a sales commission or other fee by the person making a forced placement, or the person's employer.
3. For purposes of this section, unless the context otherwise requires:
a. "Collateral insurance" means an insurance policy solely or primarily intended to provide security for a loan or to insure collateral for a loan.
b. "Forced placement" means the purchase of an insurance policy by a third person when the law or a contract obligates another person to pay the insurance premium.
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