§ 27-1-38-8 — Required disclosure concerning insurance related to a loan or a credit extension

(a) A depository institution or the affiliate of
a depository institution that:
(1) lends money or extends credit; and
(2) solicits insurance primarily for personal, family, or household
purposes;
shall disclose in writing to a customer that the insurance related to the
loan or credit extension may be purchased from an insurer or insurance
producer chosen by the customer, subject only to the ability of the
depository institution or affiliate to reasonably reject an insurer or
insurance producer as described in section 7(4) of this chapter.
(b) A disclosure under subsection (a) must inform the customer that
the customer's choice of insurer or insurance producer does not affect:
(1) the decision of the depository institution or the affiliate of a
depository institution regarding the loan or credit extension; or
(2) the terms of the loan or credit extension;
except that the depository institution or the affiliate of a depository
institution may impose reasonable requirements concerning the
creditworthiness of the insurer and the scope of insurance coverage
chosen, as described in section 7(4) of this chapter.

Legislative History

As added by P.L.130-2002, SEC.2.