Section 379.1853

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 379

Effective - 28 Aug 2023   

  379.1853.  Effective, when — terminates, when — charges, limitation on length of term. — 1.  Lender-placed insurance shall become effective no earlier than the date of lapse of insurance upon mortgaged real property subject to the terms of a mortgage agreement or any other state or federal law requiring the same.

  2.  Individual lender-placed insurance shall terminate on the earliest of the following dates:

  (1)  The date insurance that is acceptable under the mortgage agreement becomes effective, subject to the mortgagor providing sufficient evidence of such acceptable insurance;

  (2)  The date the applicable real property no longer serves as collateral for a mortgage loan pursuant to a mortgage agreement;

  (3)  Such other date as specified by the individual policy or certificate of insurance;

  (4)  Such other date as specified by the lender or servicer; or

  (5)  The termination date of the policy.

  3.  An insurance charge shall not be made to a mortgagor for lender-placed insurance for a term longer than the scheduled term of the lender-placed insurance, nor shall an insurance charge be made to the mortgagor for lender-placed insurance before the effective date of the lender-placed insurance.

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(L. 2023 S.B. 101)