GENERAL LAWS OF RHODE ISLAND, 1956

TITLE 27. INSURANCE

CHAPTER 5. FIRE INSURANCE POLICIES AND RESERVES

§ 27-5-6.1 Notice concerning single interest hazard insurance.

No bank or lending institution doing business in this state, whether acting under state or federal authority, which includes, but is not limited to (i) a bank, savings bank, or trust company, as defined in title 19, its affiliates or subsidiaries, (ii) a bank holding company as defined in 12 U.S.C. S 1841, its affiliates or subsidiaries, (iii) mortgage companies and mortgage services, and (iv) any other individual, corporation, partnership, or association authorized to take deposits and/or to make loans of money under the provisions of chapters 20, 21, 22, 23, 24, 25, 25.2, and 25.3 of title 19, shall, in connection with a loan secured by residential property situated in the state of Rhode Island of four (4) or less units and occupied or to be occupied in whole or in part by the mortgagor, obtain a single interest hazard insurance policy for the property and impose the cost thereof on the mortgagor unless the bank or lending institution shall give the mortgagor written notice of its intent to obtain that coverage and ten (10) days shall have elapsed after the date on which notice is given; provided, however, that nothing in this section shall require the giving of notice or preclude the bank or lending institution from obtaining that coverage and imposing the cost thereof on the mortgagor where the bank or lending institution has received notice of the nonrenewal or cancellation of the hazard insurance on the property.

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