2006 New Mexico Statutes - Section 58-15-16 — Loan insurance allowable; financing certain premiums prohibited.

58-15-16. Loan insurance allowable; financing certain premiums prohibited.

It shall be unlawful for any person licensed under the New Mexico Small Loan Act of 1955 [this article], in connection with the making of a loan under that act:   

A.     to sell life insurance, other than a term policy or credit life insurance on the principal borrowers;   

B.     to sell term or credit life insurance, the coverage of which exceeds the amount of the loan or extends beyond the term for which the loan is made;   

C.     after having made a loan, to finance any premiums of any life insurance policies, other than credit life insurance, sold to the borrower by the licensee or his agent in any manner for a period of ninety days;   

D.     after having made a loan, to finance any premium of any single-interest property insurance policy sold to the borrower by the licensee or his agent whereby the premium would be charged to the borrower in any manner. Except that nothing contained in this section shall preclude the sale and purchase of an insurance policy covering the dual interest of borrower and lien holder; or   

E.     to sell property insurance on unsecured loans.   

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