(a) the insurance covers a substantial risk of loss of or damage to property related to the credit transaction;

(b) the amount, terms and conditions of the insurance are reasonable in relation to the character and value of the property insured or to be insured; and

(c) the term of the insurance is reasonable in relation to the terms of credit.
(2) The term of the insurance is reasonable if it is customary and does not extend substantially beyond a scheduled maturity.
(3) A creditor may not contract for or receive a separate charge for insurance against loss of or damage to property unless the amount financed or principal exclusive of charges for the insurance is Three Hundred Dollars ($300.00), or more, or the value of the property is Three

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14 Guam Code Ann. UNIFORM CONSUMER CREDIT CODE
CH. 4 INSURANCE

Hundred Dollars ($300.00), or more.

(4) The excess amount of charge for insurance provided for agreements in violation of this Section is an excess charge for the purposes of the provisions of the Chapter on Remedies and Penalties (Chapter 5) as to the effect of violations on rights or parties (§ 5201) and of the provisions of the Chapter on Administration (Chapter 6) as to administration enforcement orders (§ 6108) and as to civil actions by the Administrator (§ 6113).
(5) The amounts of Three Hundred Dollars ($300.00) in Subsection (3) are subject to change pursuant to the provisions on adjustment of dollar amounts (§ 1106).