(6) Charges or premiums for insurance, written in connection with any
credit transaction, against loss of or damage to property or against
liability arising out of the ownership or use of property, unless a clear,
conspicuous, and specific statement in writing is furnished by the creditor
to the customer setting forth the cost of the insurance if obtained from or
through the creditor and stating that the customer may choose the person
through which the insurance is to be obtained.
(7) Premium or other charge for any other guarantee or insurance
protecting the creditor against the customer's default or other credit
(8) Any charge imposed by a creditor upon another creditor for
purchasing or accepting an obligation of a customer if the customer is
required to pay any part of that charge in cash, as an addition to the
obligation, or as a deduction from the proceeds of the obligation.
If itemized and disclosed to the customer, any charges of the following
types need not be included in the finance charge:
(a) Fees and charges prescribed by law which actually are or will be
paid to public officials for determining the existence of or for perfecting
or releasing or satisfying any security related to the credit transaction.
(b) The premium payable for any insurance in lieu of perfecting any
security interest otherwise required by the creditor in connection with the
transaction, if the premium does not exceed the fees and charges described
in subparagraph (1) of this paragraph which would otherwise be payable.
(c) Taxes not included in the cash price.
(d) License, certificate of title, and registration fees imposed by law.
(e) Other charges as authorized by this Act.
A late payment, delinquency, default, reinstatement, or other such
charge is not a finance charge if imposed for actual unanticipated late
payment, delinquency, default or other such occurrence.
(Source: P.A. 90-437, eff. 1-1-98.)