Indiana § 37-2-5-5 - Maximum charge by creditor for insurance; methods for calculating charge
Full text of Indiana Indiana Code § 37-2-5-5 — Maximum charge by creditor for insurance; methods for calculating charge, with citation guidance and answers to common questions.
§ 37-2-5-5. Maximum charge by creditor for insurance; methods for calculating charge
Sec. 5. (a) Except as provided in subsection (b), if a creditor contracts for or receives a separate charge for insurance, the amount charged to the debtor for the insurance may not exceed the premium to be charged by the insurer, as computed at the time the charge to the debtor is determined, conforming to any rate filings required by law and made by the insurer with the insurance commissioner.
(b) A creditor who provides consumer credit insurance in relation to a revolving charge account or revolving loan account may calculate the charge to the debtor in each billing cycle by applying the current premium rate to one (1) of the following:
(1) The average daily unpaid balance of the debt in the cycle.
(2) The unpaid balance of the debt or a median amount within a specified range of unpaid balances of debt on approximately the same day of the cycle. The day of the cycle need not be the day used in calculating the credit service charge under IC 37-2-3-4(f) or loan finance charge (IC 37-2-4-4 and IC 37-2-4-35), but the specified range shall be the range used for that purpose.
(3) The unpaid balances of principal calculated according to the actuarial method.
(4) The amount of the insurance benefit for the cycle.
[Pre-2026 Revision Citation: 24-4.5-4-107.]
As added by P.L.115-2026, SEC.97.
Source: official Indiana text · Last verified 2026-08-27
Frequently Asked Questions About Indiana § 37-2-5-5
What does Indiana Code § 37-2-5-5 cover?
Section 37-2-5-5 ("Maximum charge by creditor for insurance; methods for calculating charge") is part of the Indiana Code, the codified statutory law of Indiana. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Indiana § 37-2-5-5?
A common citation format is "Indiana Code § 37-2-5-5" (Indiana). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Indiana law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Indiana official source linked on this page or consult a licensed Indiana attorney.
How does Indiana § 37-2-5-5 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Indiana can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Indiana.