R20-4-534. Insurance

A. A licensee shall obtain written evidence of the borrower’s voluntary election to purchase insurance in connection with a loan if the licensee’s sale of insurance to the borrower is intended to secure repayment of a loan. The licensee shall retain this evidence of voluntary election in its records as required by statute. A document sufficient to comply with this Section shall read substantially as follows: TO SECURE REPAYMENT OF MY LOAN, I ELECT TO PURCHASE INSURANCE IN THE AMOUNT OF $ ____________. I UNDERSTAND THAT MY TOTAL LOAN OBLIGATION IS THE SUM OF $ ____________. B. A licensee shall obtain written evidence of the borrower’s voluntary election to purchase property insurance in connection with a loan if the licensee’s sale of property insurance to the borrower is intended to secure repayment of a loan. The licensee shall retain this evidence of voluntary election in its records as required by statute. A document sufficient to comply with this Section shall read substantially as follows: TO SECURE REPAYMENT OF MY LOAN, I ELECT TO PURCHASE PROPERTY INSURANCE IN THE AMOUNT OF $ ____________. I UNDERSTAND THAT MY TOTAL LOAN OBLIGATION IS THE SUM OF $ ____________. I ATTEST THAT THE VALUE OF MY PROPERTY INSURED IN CONNECTION WITH THIS LOAN IS THE SUM OF $ ____________.