N.Y. BNK Law § 357 — New York Code / Act BNK / Article 9 / Section 357
Insurance
Status: in_force

§ 357. Insurance. 1. The licensee may require a borrower, on loans of\ntwo hundred and fifty dollars or more, excluding insurance premiums and\nprecomputed interest, to insure tangible personal property, except\nhousehold goods, taken as security for a loan against any substantial\nrisk of loss, damage or destruction for an amount not to exceed the\nlesser of the reasonable value of the property insured or the principal\namount of the loan, and for the customary insurance term approximating\nthe term of the loan contract. The policy may insure the interest of the\nborrower as well as the interest of the licensee. A policy covering a\nmotor vehicle securing the loan may also insure the borrower against\nliability for bodily injury and property damage, but such liability\ninsurance shall be at the option of the borrower and shall not be\nrequired by the licensee. The premiums for all such insurance shall not\nexceed the premiums chargeable in accordance with rate filings made with\nthe superintendent of financial services for such insurance by the\ninsurer. Such insurance shall be written by, or through, a duly licensed\ninsurance agent or broker, or shall be provided directly by a company\nqualified to do business in this state.\n  2. For purposes of this section, the term "household goods" shall mean\nclothing, furniture, appliances, one radio and one television, linens,\nchina, crockery, kitchenware, and personal effects (including wedding\nrings) owned by the consumer and his or her dependents, but shall not\ninclude works of art, other electronic entertainment equipment, items\nacquired as antiques, and other jewelry.\n  3. When a licensee provides credit life insurance, credit accident and\nhealth insurance, or credit unemployment insurance, or credit property\ninsurance pursuant to section two thousand three hundred forty of the\ninsurance law, or any combination thereof with respect to one or more\nborrowers, such licensee may collect from the borrower a premium or\nidentifiable charge which shall not exceed the premium rates or\nidentifiable charges chargeable in accordance with rate filings made\nwith the superintendent of financial services for such insurance by the\ninsurer, subject to a refund of the insurance charge computed as\nprovided in paragraph (a) of subdivision five of section three hundred\nfifty-one of this article, in the event of prepayment by cash, a new\nloan, refinancing or otherwise. Only one such amount may be collected in\nconnection with any loan contract irrespective of the number of obligors\nand only one obligor need be insured.\n  4. The insurance authorized by this section, with the exception of\ninsurance provided under group insurance policies, may be written by or\narranged through the licensee or an affiliate, associate or employee of\nthe licensee only if such licensee, affiliate, associate or employee is\na duly licensed insurance agent or broker, provided, however, no\nlicensee shall decline new or existing insurance which meets or exceeds\nthe standards set forth in this section, nor prevent any borrower from\nobtaining such insurance coverage from other sources.\n  5. If a borrower procures such insurance by or through a licensee, the\nstatement required by section three hundred fifty-two of this article\nshall disclose the cost or rate of charge to the borrower and the type\nof insurance, and the licensee shall cause to be delivered to the\nborrower a copy of the policy, certificate, or other evidence therefor\nwithin a reasonable time.\n  6. The insurance authorized by this section and all benefits or\nreturns therefrom accruing to the licensee or to any affiliate,\nassociate or employee of the licensee shall not be prohibited by any\nother provision of this article.\n  7. No insurance shall be required, requested, sold or offered for sale\nin connection with any loan made under this article, except as and to\nthe extent authorized by this section or as provided in subdivision six\nof section three hundred fifty-one of this article.\n  If the borrowers on any loan are husband and wife, joint credit life\ninsurance and joint credit accident and health insurance may be issued\non such loan pursuant to this section.\n