Noncredit property insurance may be sold in consumer credit
transactions only when the sole purpose of the transaction is to finance the
sale of noncredit property insurance. This single purpose requirement is
satisfied when the amount financed for the transaction includes only the
premium cost for the noncredit property insurance and applicable fees or taxes.
Noncredit property insurance premiums may not be included within the amount
financed of a consumer credit transaction that includes consumer loans or
consumer credit sales for items other than the purchase of noncredit property
insurance. Noncredit property insurance may also be purchased by cash, check or
credit card so long as the sale of the product meets all applicable
requirements of this chapter. The credit sale of noncredit property insurance
premiums must also meet applicable requirements of Iowa Code section
537.3207,
"Form of insurance premium loan agreement."
