Section 16-111. REQUIREMENT FOR PROPERTY INSURANCE PROHIBITED

 

111.1Unless otherwise required by law, no seller, as a condition to the extension of credit, shall require a buyer to obtain insurance against loss of or damage to property which is the subject of a sale, or against liability arising out of the ownership or use of the property.

 

111.2The provisions of § 111.1 shall not apply to transactions where the sales price of the property is one thousand dollars ($ 1,000) or more.

 

111.3If the sales price of property sold is one thousand dollars ($ 1,000) or more, the amount of loss or damage insurance a seller may require a buyer to obtain, as a condition to the extension of credit to the buyer, shall not exceed the sales price of the property insured.