§ 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 financial services 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 financial services 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.