Guam § 4301 - Property Insurance.

§ 4301. Property Insurance.

(1) A creditor may not contract for or receive a separate charge for

insurance against loss of or damage to property unless:

(a) the insurance covers a substantial risk of loss of or damage

to property related to the credit transaction;

(b) the amount, terms and conditions of the insurance are

reasonable in relation to the character and value of the property

insured or to be insured; and

(c) the term of the insurance is reasonable in relation to the

terms of credit.

(2) The term of the insurance is reasonable if it is customary and

does not extend substantially beyond a scheduled maturity.

(3) A creditor may not contract for or receive a separate charge for

insurance against loss of or damage to property unless the amount

financed or principal exclusive of charges for the insurance is Three

Hundred Dollars ($300.00), or more, or the value of the property is Three

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Hundred Dollars ($300.00), or more.

(4) The excess amount of charge for insurance provided for

agreements in violation of this Section is an excess charge for the

purposes of the provisions of the Chapter on Remedies and Penalties

(Chapter 5) as to the effect of violations on rights or parties (§ 5201) and

of the provisions of the Chapter on Administration (Chapter 6) as to

administration enforcement orders (§ 6108) and as to civil actions by the

Administrator (§ 6113).

(5) The amounts of Three Hundred Dollars ($300.00) in Subsection

(3) are subject to change pursuant to the provisions on adjustment of

dollar amounts (§ 1106).