3 AAC 12.210 - Allowable insurance and charges
(a) Nothing in this
chapter requires loan insurance of any type and no licensee may require the
borrower to purchase any type of insurance that is payable directly to the
licensee.
(b) All insurance sold
under this section must be reasonably related to a likely hazard or risk of
loss. Any person receiving compensation for the sale of insurance must be an
agent licensed in this state, and the insurance policy sold by the licensee
must be issued by an insurance company permitted to conduct the business of
insurance in this state under AS 21.
(c) Property insurance may be purchased at
the option of the borrower in an amount not to exceed the reasonable value of
the insured property or the approximate amount of the loan or transaction,
whichever is less.
(d) When a loan
is paid by renewal and original loan collateral is retained as collateral for
the renewed loan, any termination fee collected under AS 45.05 for the
collateral held for the original loan must be carried forward and identified on
the new payment record as a prepaid termination fee for the new loan.
Notes
Authority:AS 06.20.260
AS 06.20.340
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