If the creditor adds identifiable insurance charges or premiums for credit insurance to the total amount of the indebtedness, and makes any direct or indirect finance, carrying, credit or service charges whatever to the debtor in connection with such insurance charge or premiums, the creditor has loaned the premium or the insurance charge to the debtor. This loaned premium will be deemed collected by the insurer as soon as it is added to the indebtedness. In this event, the coverage is deemed to be on a single premium basis. However, credit insurance issued in connection with a covered loan cannot be financed, either directly or indirectly. A "covered loan" is defined in § 5-3.5-101(2), C.R.S.
A creditor may remit and an insurer may collect on a monthly basis if the insurance charge or premium is not added to the initial amount financed and does not constitute part of the initial outstanding indebtedness, and if no direct or indirect finance, carrying, credit or service charge is made to the debtor in connection with the insurance charge or premium.
3 CCR 702-4-9-2-7