Vermont § 4725 - Favored agent or insurer; coercion of debtors

§ 4725. Favored agent or insurer; coercion of debtors

• (a) No person may: (1) require, as a condition precedent to the lending of money or extension of credit,
  or any renewal thereof, that the person to whom such money or credit is extended or
  whose obligation the creditor is to acquire or finance, negotiate any policy or contract
  of insurance through a particular insurer or group of insurers or agent or broker
  or group of agents or brokers; (2) unreasonably disapprove the insurance policy provided by a borrower for the protection
  of property securing the credit or lien; for the purpose of this subdivision, this
  disapproval shall be deemed unreasonable if it is not based solely on reasonable standards
  uniformly applied, relating to the extent of coverage required and the financial soundness
  and service of an insurer; these standards shall not discriminate against a particular
  type of insurer, nor shall these standards call for the disapproval of an insurance
  policy because the policy contains coverage in addition to that required; (3) require directly or indirectly that any borrower, mortgagor, purchaser, insurer, broker,
  or agent pay a separate charge to substitute the insurance policy of one insurer for
  that of another. This subdivision does not include the interest that may be charged
  on premium loans or premium advancements in accordance with the security instrument; (4) use or disclose information resulting from a requirement that a borrower, mortgagor,
  or purchaser furnish insurance of any kind on real property being conveyed or used
  as collateral security to a loan, when this information is to the advantage of the
  mortgagee, vendor, or lender, or is to the detriment of the borrower, mortgagor, purchaser,
  insurer, or the agent of broker complying with this request. (b) The Commissioner may investigate any person to whom this section applies to determine
  whether such person has violated this section. (Amended 1973, No. 216 (Adj. Sess.), § 5, eff. May 1, 1974.)