6-571. Insurance for members
A credit union may purchase or provide insurance on the lives or credit disability
of its members in an amount equal to their respective share and loan balances or either
or both of them and purchase or provide vendor's single interest property insurance
coverages on property which is pledged as security if the borrower fails to provide
evidence of adequate coverages placed with an insurance carrier selected by the
borrower. Nothing in this section shall prohibit the lender from specifying reasonable
requirements for coverages and the financial condition of the insurance carrier.
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