Section 357. Insurance

1. The licensee may require a borrower, on loans of
  two hundred and fifty dollars or more, excluding insurance premiums  and
  precomputed  interest,  to  insure  tangible  personal  property, except
  household goods, taken as security for a loan  against  any  substantial
  risk  of  loss,  damage  or  destruction for an amount not to exceed the
  lesser of the reasonable value of the property insured or the  principal
  amount  of  the loan, and for the customary insurance term approximating
  the term of the loan contract. The policy may insure the interest of the
  borrower as well as the interest of the licensee. A  policy  covering  a
  motor  vehicle  securing  the  loan may also insure the borrower against
  liability for bodily injury and  property  damage,  but  such  liability
  insurance  shall  be  at  the  option  of  the borrower and shall not be
  required by the licensee. The premiums for all such insurance shall  not
  exceed the premiums chargeable in accordance with rate filings made with
  the  superintendent of insurance for such insurance by the insurer. Such
  insurance shall be written by, or through,  a  duly  licensed  insurance
  agent or broker, or shall be provided directly by a company qualified to
  do business in this state.
    2. For purposes of this section, the term "household goods" shall mean
  clothing,  furniture,  appliances, one radio and one television, linens,
  china, crockery, kitchenware, and personal  effects  (including  wedding
  rings)  owned  by  the consumer and his or her dependents, but shall not
  include works of art, other electronic  entertainment  equipment,  items
  acquired as antiques, and other jewelry.
    3. When a licensee provides credit life insurance, credit accident and
  health  insurance,  or credit unemployment insurance, or credit property
  insurance pursuant to section two thousand three hundred  forty  of  the
  insurance  law,  or  any combination thereof with respect to one or more
  borrowers, such licensee may collect from  the  borrower  a  premium  or
  identifiable  charge  which  shall  not  exceed  the  premium  rates  or
  identifiable charges chargeable in accordance  with  rate  filings  made
  with  the superintendent of insurance for such insurance by the insurer,
  subject to a refund of the insurance  charge  computed  as  provided  in
  paragraph  (a) of subdivision five of section three hundred fifty-one of
  this  article,  in  the  event  of  prepayment  by  cash,  a  new  loan,
  refinancing  or  otherwise.  Only  one  such  amount may be collected in
  connection with any loan contract irrespective of the number of obligors
  and only one obligor need be insured.
    4. The insurance authorized by this section,  with  the  exception  of
  insurance  provided under group insurance policies, may be written by or
  arranged through the licensee or an affiliate, associate or employee  of
  the  licensee only if such licensee, affiliate, associate or employee is
  a duly  licensed  insurance  agent  or  broker,  provided,  however,  no
  licensee  shall decline new or existing insurance which meets or exceeds
  the standards set forth in this section, nor prevent any  borrower  from
  obtaining such insurance coverage from other sources.
    5. If a borrower procures such insurance by or through a licensee, the
  statement  required  by  section three hundred fifty-two of this article
  shall disclose the cost or rate of charge to the borrower and  the  type
  of  insurance,  and  the  licensee  shall  cause  to be delivered to the
  borrower a copy of the policy, certificate, or other  evidence  therefor
  within a reasonable time.
    6.  The  insurance  authorized  by  this  section  and all benefits or
  returns  therefrom  accruing  to  the  licensee  or  to  any  affiliate,
  associate  or  employee  of  the licensee shall not be prohibited by any
  other provision of this article.
    7. No insurance shall be required, requested, sold or offered for sale
  in connection with any loan made under this article, except  as  and  to

  the  extent authorized by this section or as provided in subdivision six
  of section three hundred fifty-one  of this article.
    If  the  borrowers on any loan are husband and wife, joint credit life
  insurance and joint credit accident and health insurance may  be  issued
  on such loan pursuant to this section.