§ 6-J. Proof of insurance.
262 words·~1 min read·
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§ 6-j. Proof of insurance. 1. No exempt organization, as defined in
section five hundred ninety of this chapter, or licensed mortgage banker
which originates mortgage loans shall, at the time of title closing for
a loan secured by a one to four family residential real property, refuse
to accept a binder, issued by an insurer, or a duly authorized
representative of an insurer, licensed to do business in this state, as
evidence that hazard insurance has been procured for the mortgaged
premises. Nothing herein is intended to prohibit the mortgage banker or
exempt organization from requiring the borrower to also furnish a
receipt indicating that the annual or installment premium on such
insurance policy has been paid.
2. As used in this section, "binder" means a written document
which includes the name and address of the insured and any additional
named insureds, mortgagees, or lienholders; a description of the
property insured; a description of the nature and amount of coverage
which shall be deemed to include the terms of the standard fire
insurance policy except as conspicuously noted on the binder; the
identity of the insurer and of the authorized representative executing
the binder; the effective date of coverage; the binder number or the
policy number where applicable to a policy extension, and
(b)which
temporarily obligates the insurer to provide that insurance coverage
pending issuance of the insurance policy. The cancellation of such a
binder shall be governed at the minimum by the provisions of the
standard fire insurance policy and the provisions of the insurance law
applicable thereto.