(a)  This chapter applies to insurers and insurance producers engaged in any transaction involving lender-placed insurance as defined in this chapter.

Terms Used In Rhode Island General Laws 27-6.1-2

  • Lender: means a person or entity (and its affiliates) making loans secured by an interest in real property. See Rhode Island General Laws 27-6.1-3
  • Lender-placed insurance: means insurance obtained by a lender or servicer when a mortgagor does not maintain valid and/or sufficient insurance upon mortgaged real property as required by the terms of the mortgage agreement. See Rhode Island General Laws 27-6.1-3
  • Mortgagor: means the person who is obligated on a mortgage loan pursuant to a mortgage agreement. See Rhode Island General Laws 27-6.1-3
  • Mortgagor: The person who pledges property to a creditor as collateral for a loan and who receives the money.
  • Real estate owned property: means property owned or held by a lender or servicer following foreclosure under the related mortgage agreement or the acceptance of a deed in lieu of foreclosure. See Rhode Island General Laws 27-6.1-3
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • servicer: includes entities involved in subservicing arrangements. See Rhode Island General Laws 27-6.1-3

(b)  All lender-placed insurance written in connection with mortgaged real property, including manufactured and mobile homes, is subject to the provisions of this chapter, except:

(1)  Transactions involving extensions of credit primarily for business, commercial, or agricultural purposes.

(2)  Insurance offered by the lender or servicer and elected by the mortgagor at the mortgagor‘s option.

(3)  Insurance purchased by a lender or servicer on real estate owned property.

(4)  Insurance for which no specific charge is made to the mortgagor or the mortgagor’s account.

History of Section.
P.L. 2022, ch. 404, § 7, effective June 30, 2022; P.L. 2022, ch. 405, § 7, effective June 30, 2022.