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New York Banking Law Section 6-j - Proof Of Insurance.

Legal Research Home > New York Lawyer > Banking > New York Banking Law Section 6-j - Proof Of Insurance.

    § 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 (a)
  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.

Last modified: August 26, 2006