SB2786: Lender-placed insurance on real property; provide framework for regulating.

Legislative Summary

An Act To Provide For Framework For The Department Of Insurance To Regulate Lender-placed Insurance On Real Property; To Provide Certain Exclusions To The Act; To Place Certain Requirements On Lender-placed Insurance Policies; To Provide Certain Calculations To Be Followed For Determining The Replacement Cost Value Of Real Property That Are Subject To Such Policy; To Prohibit Insurance Producers Or Insurers From Issuing Lender-placed Insurance On Mortgaged Property If The Insurer Or Insurance Producer Or Affiliate Of The Insurer Or Insurance Producer, Owns, Performs The Servicing For, Or Owns The Servicing Right To, The Mortgaged Property; To Prohibit No Insurer Or Insurance Provider From Compensating A Lender, Insurer, Investor Or Servicer, Including Through The Payment Of Commissions, For Lender-placed Insurance Policies Issued By The Insurer; To Establish Certain Prohibitions; To Provide Certain Exceptions To The Application Of The Act; To Set Certain Required Elements Of Lender-placed Insurance Policies; To Authorize The Commissioner Of Insurance To Enforce The Provisions Of The Act; To Authorize The Department Of Insurance To Impose A Monetary Penalty For Violations Of The Act; And For Related Purposes.