375.937. 1. No person may require as a condition precedent to thelending of money or extension of credit, or any renewal thereof, that theperson to whom such money or credit is extended or whose obligation acreditor is to acquire or finance, negotiate any contract of insurance orrenewal thereof through a particular insurer or group of insurers or agent,broker or group of agents or brokers.
2. No person who lends money or extends credit may:
(1) Unreasonably reject a contract of insurance furnished by theborrower for the protection of the property securing the credit or lien. Arejection shall not be deemed unreasonable if it is based on reasonablestandards, uniformly applied, relating to the extent of coverage requiredand the financial soundness and the services of an insurer. Such standardsshall not discriminate against any particular type of insurer, nor shallsuch standards call for rejection of an insurance contract because thecontract contains coverage in addition to that required in the credittransaction;
(2) Require that any borrower, mortgagor, purchaser, insurer, brokeror agent pay a separate charge, in connection with the handling of anycontract of insurance required as security for a loan on real estate, orpay a separate charge to substitute the insurance policy of one insurer forthat of another. This subdivision does not include the interest which maybe charged on premium loans or premium advancements in accordance with theterms of the loan or credit documents;
(3) Use or disclose, without the prior written consent of theborrower, mortgagor, or purchaser taken at a time other than the making ofthe loan or extension of credit, information relative to a contract ofinsurance which is required by the credit transaction, for the purpose ofreplacing such insurance;
(4) Require any procedures or conditions of duly licensed agents,brokers or insurers not customarily required of those agents, brokers orinsurers affiliated or in any way connected with the person who lends moneyor extends credit;
(5) Solicit insurance for the protection of real property, after aperson indicates interest in securing a first mortgage credit extension,until such person has received a commitment in writing from the lender asto a loan or credit extension;
(6) As a condition of financing a residential mortgage or providingother financial arrangements for residential property, require a borrowerto purchase homeowners' insurance coverage in an amount exceeding thereplacement value of the improvements and contents on the real property. Aviolation of this subdivision shall not affect the validity of the loan,note secured by a deed of trust, mortgage, or deed of trust.
3. Every person who lends money or extends credit and who solicitsinsurance on real and personal property subject to subsection 2 of thissection must explain to the borrower in writing that the insurance relatedto such credit extension may be purchased from an insurer or agent of theborrower's choice, subject only to the lender's right to reject a giveninsurer or agent as provided in subdivision (1) of subsection 2 of thissection. Compliance with disclosures as to insurance required bytruth-in-lending laws or comparable state laws shall be in compliance withthis subsection. This requirement for a commitment shall not apply incases where the premium for the required insurance is to be financed aspart of the loan or extension of credit involving personal propertytransactions. The commitment shall contain the rate or rate formula,amount and terms of the loan, subject to the creditworthiness of theborrower, valuation of the property and the insurability to value of theproperty.
4. The director shall have the power to examine and investigate thoseinsurance-related activities of any person which may be in violation ofthis section. Any affected person may submit to the director a complaintor material pertinent to the enforcement of this section.
5. Nothing in this section shall prevent a person who lends money orextends credit from placing insurance on real or personal property in theevent the mortgagor, borrower or purchaser has failed to provide requiredinsurance in accordance with the terms of the loan or credit document.
6. Nothing contained in this section shall apply to credit life orcredit accident and health insurance.
375.937. 1. No person may require as a condition precedent to thelending of money or extension of credit, or any renewal thereof, that theperson to whom such money or credit is extended or whose obligation acreditor is to acquire or finance, negotiate any contract of insurance orrenewal thereof through a particular insurer or group of insurers or agent,broker or group of agents or brokers.
2. No person who lends money or extends credit may:
(1) Unreasonably reject a contract of insurance furnished by theborrower for the protection of the property securing the credit or lien. Arejection shall not be deemed unreasonable if it is based on reasonablestandards, uniformly applied, relating to the extent of coverage requiredand the financial soundness and the services of an insurer. Such standardsshall not discriminate against any particular type of insurer, nor shallsuch standards call for rejection of an insurance contract because thecontract contains coverage in addition to that required in the credittransaction;
(2) Require that any borrower, mortgagor, purchaser, insurer, brokeror agent pay a separate charge, in connection with the handling of anycontract of insurance required as security for a loan on real estate, orpay a separate charge to substitute the insurance policy of one insurer forthat of another. This subdivision does not include the interest which maybe charged on premium loans or premium advancements in accordance with theterms of the loan or credit documents;
(3) Use or disclose, without the prior written consent of theborrower, mortgagor, or purchaser taken at a time other than the making ofthe loan or extension of credit, information relative to a contract ofinsurance which is required by the credit transaction, for the purpose ofreplacing such insurance;
(4) Require any procedures or conditions of duly licensed agents,brokers or insurers not customarily required of those agents, brokers orinsurers affiliated or in any way connected with the person who lends moneyor extends credit;
(5) Solicit insurance for the protection of real property, after aperson indicates interest in securing a first mortgage credit extension,until such person has received a commitment in writing from the lender asto a loan or credit extension;
(6) As a condition of financing a residential mortgage or providingother financial arrangements for residential property, require a borrowerto purchase homeowners' insurance coverage in an amount exceeding thereplacement value of the improvements and contents on the real property. Aviolation of this subdivision shall not affect the validity of the loan,note secured by a deed of trust, mortgage, or deed of trust.
3. Every person who lends money or extends credit and who solicitsinsurance on real and personal property subject to subsection 2 of thissection must explain to the borrower in writing that the insurance relatedto such credit extension may be purchased from an insurer or agent of theborrower's choice, subject only to the lender's right to reject a giveninsurer or agent as provided in subdivision (1) of subsection 2 of thissection. Compliance with disclosures as to insurance required bytruth-in-lending laws or comparable state laws shall be in compliance withthis subsection. This requirement for a commitment shall not apply incases where the premium for the required insurance is to be financed aspart of the loan or extension of credit involving personal propertytransactions. The commitment shall contain the rate or rate formula,amount and terms of the loan, subject to the creditworthiness of theborrower, valuation of the property and the insurability to value of theproperty.
4. The director shall have the power to examine and investigate thoseinsurance-related activities of any person which may be in violation ofthis section. Any affected person may submit to the director a complaintor material pertinent to the enforcement of this section.
5. Nothing in this section shall prevent a person who lends money orextends credit from placing insurance on real or personal property in theevent the mortgagor, borrower or purchaser has failed to provide requiredinsurance in accordance with the terms of the loan or credit document.
6. Nothing contained in this section shall apply to credit life orcredit accident and health insurance.
375.937. 1. No person may require as a condition precedent to thelending of money or extension of credit, or any renewal thereof, that theperson to whom such money or credit is extended or whose obligation acreditor is to acquire or finance, negotiate any contract of insurance orrenewal thereof through a particular insurer or group of insurers or agent,broker or group of agents or brokers.
2. No person who lends money or extends credit may:
(1) Unreasonably reject a contract of insurance furnished by theborrower for the protection of the property securing the credit or lien. Arejection shall not be deemed unreasonable if it is based on reasonablestandards, uniformly applied, relating to the extent of coverage requiredand the financial soundness and the services of an insurer. Such standardsshall not discriminate against any particular type of insurer, nor shallsuch standards call for rejection of an insurance contract because thecontract contains coverage in addition to that required in the credittransaction;
(2) Require that any borrower, mortgagor, purchaser, insurer, brokeror agent pay a separate charge, in connection with the handling of anycontract of insurance required as security for a loan on real estate, orpay a separate charge to substitute the insurance policy of one insurer forthat of another. This subdivision does not include the interest which maybe charged on premium loans or premium advancements in accordance with theterms of the loan or credit documents;
(3) Use or disclose, without the prior written consent of theborrower, mortgagor, or purchaser taken at a time other than the making ofthe loan or extension of credit, information relative to a contract ofinsurance which is required by the credit transaction, for the purpose ofreplacing such insurance;
(4) Require any procedures or conditions of duly licensed agents,brokers or insurers not customarily required of those agents, brokers orinsurers affiliated or in any way connected with the person who lends moneyor extends credit;
(5) Solicit insurance for the protection of real property, after aperson indicates interest in securing a first mortgage credit extension,until such person has received a commitment in writing from the lender asto a loan or credit extension;
(6) As a condition of financing a residential mortgage or providingother financial arrangements for residential property, require a borrowerto purchase homeowners' insurance coverage in an amount exceeding thereplacement value of the improvements and contents on the real property. Aviolation of this subdivision shall not affect the validity of the loan,note secured by a deed of trust, mortgage, or deed of trust.
3. Every person who lends money or extends credit and who solicitsinsurance on real and personal property subject to subsection 2 of thissection must explain to the borrower in writing that the insurance relatedto such credit extension may be purchased from an insurer or agent of theborrower's choice, subject only to the lender's right to reject a giveninsurer or agent as provided in subdivision (1) of subsection 2 of thissection. Compliance with disclosures as to insurance required bytruth-in-lending laws or comparable state laws shall be in compliance withthis subsection. This requirement for a commitment shall not apply incases where the premium for the required insurance is to be financed aspart of the loan or extension of credit involving personal propertytransactions. The commitment shall contain the rate or rate formula,amount and terms of the loan, subject to the creditworthiness of theborrower, valuation of the property and the insurability to value of theproperty.
4. The director shall have the power to examine and investigate thoseinsurance-related activities of any person which may be in violation ofthis section. Any affected person may submit to the director a complaintor material pertinent to the enforcement of this section.
5. Nothing in this section shall prevent a person who lends money orextends credit from placing insurance on real or personal property in theevent the mortgagor, borrower or purchaser has failed to provide requiredinsurance in accordance with the terms of the loan or credit document.
6. Nothing contained in this section shall apply to credit life orcredit accident and health insurance.
