Consumer Credit Regulation: 6.3.2.3 Creditor Receives Interest on the Premium
Creditors often finance the consumer’s credit insurance premium and gain additional interest revenue on such financing. If the purchase of the credit life or credit accident and health insurance is voluntary, or if the borrower has a choice of providers on required property insurance on collateral, the Truth in Lending Act and most state credit laws108 permit the cost of the premium to be included in the principal or amount financed.