2023 New York Laws › BNK - Banking › Article 9 - Licensed Lenders › 357 - Insurance.

§  357. Insurance. 1. The licensee may require a borrower, on loans of
  two hundred and fifty dollars or more, excluding insurance premiums  and
  precomputed  interest,  to  insure  tangible  personal  property, except
  household goods, taken as security for a loan  against  any  substantial
  risk  of  loss,  damage  or  destruction for an amount not to exceed the
  lesser of the reasonable value of the property insured or the  principal
  amount  of  the loan, and for the customary insurance term approximating
  the term of the loan contract. The policy may insure the interest of the
  borrower as well as the interest of the licensee. A  policy  covering  a
  motor  vehicle  securing  the  loan may also insure the borrower against
  liability for bodily injury and  property  damage,  but  such  liability
  insurance  shall  be  at  the  option  of  the borrower and shall not be
  required by the licensee. The premiums for all such insurance shall  not
  exceed the premiums chargeable in accordance with rate filings made with
  the  superintendent  of  financial  services  for  such insurance by the
  insurer. Such insurance shall be written by, or through, a duly licensed
  insurance agent or broker, or shall be provided directly  by  a  company
  qualified to do business in this state.
2. For purposes of this section, the term "household goods" shall mean
  clothing,  furniture,  appliances, one radio and one television, linens,
  china, crockery, kitchenware, and personal  effects  (including  wedding
  rings)  owned  by  the consumer and his or her dependents, but shall not
  include works of art, other electronic  entertainment  equipment,  items
  acquired as antiques, and other jewelry.
3. When a licensee provides credit life insurance, credit accident and
  health  insurance,  or credit unemployment insurance, or credit property
  insurance pursuant to section two thousand three hundred  forty  of  the
  insurance  law,  or  any combination thereof with respect to one or more
  borrowers, such licensee may collect from  the  borrower  a  premium  or
  identifiable  charge  which  shall  not  exceed  the  premium  rates  or
  identifiable charges chargeable in accordance  with  rate  filings  made
  with  the superintendent of financial services for such insurance by the
  insurer, subject to  a  refund  of  the  insurance  charge  computed  as
  provided  in  paragraph (a) of subdivision five of section three hundred
  fifty-one of this article, in the event of prepayment  by  cash,  a  new
  loan, refinancing or otherwise. Only one such amount may be collected in
  connection with any loan contract irrespective of the number of obligors
  and only one obligor need be insured.
4.  The  insurance  authorized  by this section, with the exception of
  insurance provided under group insurance policies, may be written by  or
  arranged  through the licensee or an affiliate, associate or employee of
  the licensee only if such licensee, affiliate, associate or employee  is
  a  duly  licensed  insurance  agent  or  broker,  provided,  however, no
  licensee shall decline new or existing insurance which meets or  exceeds
  the  standards  set forth in this section, nor prevent any borrower from
  obtaining such insurance coverage from other sources.
5. If a borrower procures such insurance by or through a licensee, the
  statement required by section three hundred fifty-two  of  this  article
  shall  disclose  the cost or rate of charge to the borrower and the type
  of insurance, and the licensee  shall  cause  to  be  delivered  to  the
  borrower  a  copy of the policy, certificate, or other evidence therefor
  within a reasonable time.
6. The insurance authorized  by  this  section  and  all  benefits  or
  returns  therefrom  accruing  to  the  licensee  or  to  any  affiliate,
  associate or employee of the licensee shall not  be  prohibited  by  any
  other provision of this article.
7. No insurance shall be required, requested, sold or offered for sale
  in  connection  with  any loan made under this article, except as and to

  the extent authorized by this section or as provided in subdivision  six
  of section three hundred fifty-one of this article.
If  the  borrowers on any loan are husband and wife, joint credit life
  insurance and joint credit accident and health insurance may  be  issued
  on such loan pursuant to this section.