§ 6-J — Proof of insurance

New York § 6-J

• Jurisdiction: New York
• Law BNK: Banking
• Art. 1: Short Title; Definitions; Miscellaneous Provisions

Text

§ 6-j. Proof of insurance. 1. No exempt organization, as defined in\nsection five hundred ninety of this chapter, or licensed mortgage banker\nwhich originates mortgage loans shall, at the time of title closing for\na loan secured by a one to four family residential real property, refuse\nto accept a binder, issued by an insurer, or a duly authorized\nrepresentative of an insurer, licensed to do business in this state, as\nevidence that hazard insurance has been procured for the mortgaged\npremises. Nothing herein is intended to prohibit the mortgage banker or\nexempt organization from requiring the borrower to also furnish a\nreceipt indicating that the annual or installment premium on such\ninsurance policy has been paid.\n 2. As used in this section, "binder" means a written document (a)\nwhich includes the name and address of the insured and any additional\nnamed insureds, mortgagees, or lienholders; a description of the\nproperty insured; a description of the nature and amount of coverage\nwhich shall be deemed to include the terms of the standard fire\ninsurance policy except as conspicuously noted on the binder; the\nidentity of the insurer and of the authorized representative executing\nthe binder; the effective date of coverage; the binder number or the\npolicy number where applicable to a policy extension, and (b) which\ntemporarily obligates the insurer to provide that insurance coverage\npending issuance of the insurance policy. The cancellation of such a\nbinder shall be governed at the minimum by the provisions of the\nstandard fire insurance policy and the provisions of the insurance law\napplicable thereto.\n