Rhode Island General Laws 27-6.1-4. Term of insurance policy
(a) Lender-placed insurance shall become effective no earlier than the date of lapse of insurance upon mortgaged real property subject to the terms of a mortgage agreement and/or any other state or federal law requiring the same.
Terms Used In Rhode Island General Laws 27-6.1-4
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Lapse: means the moment in time in which a mortgagor has failed to secure or maintain valid and/or sufficient insurance upon mortgaged real property as required by a mortgage agreement. See Rhode Island General Laws 27-6.1-3
- 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
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage agreement: means the written document that sets forth an obligation or a liability of any kind secured by a lien on real property and due from, owing, or incurred by a mortgagor to a lender on account of a mortgage loan, including the security agreement, deed of trust, and any other document of similar effect, and any other documents incorporated by reference. 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.
- 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
- 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) Individual lender-placed insurance shall terminate on the earliest of the following dates:
(1) The date the insurance that is acceptable under the mortgage agreement becomes effective, subject to the mortgagor providing sufficient evidence of such acceptable insurance.
(2) The date the applicable real property no longer serves as collateral for a mortgage loan pursuant to a mortgage agreement.
(3) Such other date as specified by the individual policy or certificate of insurance.
(4) Such other date as specified by the lender or servicer.
(5) The termination date of the policy.
(c) An insurance charge shall not be made to a mortgagor for lender-placed insurance for a term longer than the scheduled term of the lender-placed insurance, nor may an insurance charge be made to the mortgagor for lender-placed insurance before the effective date of the lender-placed insurance.
History of Section.
P.L. 2022, ch. 404, § 7, effective June 30, 2022; P.L. 2022, ch. 405, § 7, effective June 30, 2022.