Rhode Island § 27-5-3.2 § 27-5-3.2. Property insurance.

Rhode Island Statutes

§ 27-5-3.2 — § 27-5-3.2. Property insurance.

Rhode Island § 27-5-3.2

Title 27Insurance

Ch. 27-5Fire Insurance Policies and Reserves

This text of Rhode Island § 27-5-3.2 (§ 27-5-3.2. Property insurance.) is published on Counsel Stack Legal Research, covering Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

R.I. Gen. Laws § 27-5-3.2 (2026).

Text

§ 27-5-3.2. Property insurance.
(a) No lending institution, as defined in § 19-9-1, doing business in this state, its affiliates or subsidiaries, or a bank holding
            company, as defined in 12 U.S.C. § 1841, its affiliates or subsidiaries, shall, as a condition of the mortgage or as a term
            of the mortgage deed, require that the mortgagor carry property insurance on the property
            that is the subject of the mortgage in excess of the replacement cost of any buildings
            or appurtenances subject to the mortgage; provided, when in the course of selling,
            transferring, conveying, or assigning a mortgage, the servicing rights of the mortgage
            are similarly t

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§ 27-5-3.2. Property insurance.

(a) No lending institution, as defined in § 19-9-1, doing business in this state, its affiliates or subsidiaries, or a bank holding company, as defined in 12 U.S.C. § 1841, its affiliates or subsidiaries, shall, as a condition of the mortgage or as a term of the mortgage deed, require that the mortgagor carry property insurance on the property that is the subject of the mortgage in excess of the replacement cost of any buildings or appurtenances subject to the mortgage; provided, when in the course of selling, transferring, conveying, or assigning a mortgage, the servicing rights of the mortgage are similarly transferred, conveyed, or assigned, then and in that event it shall be the responsibility of the holder of the mortgage to notify the insurance producer issuing the property insurance policy and the insurer in writing of that sale, transfer, conveyance, or assignment. This notice shall be made in writing and shall be sent to the insurance producer and the insurer within thirty (30) days of the sale, transfer, conveyance, or assignment by mail. In the event that the holder of a mortgage shall fail to notify the insurance producer and the insurer who issued the property insurance policy that is in force, in writing, of that sale, transfer, conveyance, or assignment within thirty (30) days, the holder shall indemnify and hold the insurance producer harmless.

(b) Notwithstanding any provision in this title to the contrary, no such holder of a mortgage shall be entitled to payment of a claim under a property insurance policy for a loss to a covered building which equals less than three thousand five hundred dollars ($3,500), and for which such holder of a mortgage is otherwise entitled to payment, unless no liability exists as to the mortgagor.