2007 Minnesota Statutes

65A.061 CREDITORS LIMITED TO EXISTING INSURANCE.
When a creditor requires a debtor to provide insurance on real or personal property security
against reasonable risks of loss, damage, or destruction, no insurance shall be sold or placed by or
through the creditor if the debtor provides the creditor with a loss payable through existing policies
of insurance that the debtor owns or controls. This section does not apply if the existing insurance
is in an amount less than the amount of indebtedness to be secured on the real or personal property.
This section does not prevent the disapproval of the insurer or a policy of insurance where
there are reasonable grounds for believing that the insurer is insolvent or that the insurance is
unsatisfactory as to placement with an unauthorized insurer, adequacy of the coverage, adequacy
of the insurer to assume the risk to be insured, the assessment features to which the policy is
subject, or other grounds that are based on the nature of the coverage and that are not arbitrary,
unreasonable, or discriminatory. This section does not prevent a mortgage lender or mortgage
servicer from requiring that a policy of insurance or renewal of the policy be in conformance with
standards of the Federal National Mortgage Association or the Federal Home Loan Mortgage
Corporation, nor does this section forbid the securing of a policy of insurance or a renewal of the
policy at the request of the borrower or because of the borrower's failure to furnish the necessary
insurance or renewal.
This section supersedes any inconsistent provision of law to the contrary.
History: 1989 c 330 s 25