DocMagic provides the Kentucky Notice of Free Choice of Agent or Insurer form (Form ID KYNCAI.MSC) to comply with Kentucky Statute § 304.12-150. The statute indicates that when insurance of any kind is required in connection with a debt or loan on a property, the borrower shall be informed by the lender of his or her right of free choice in the selection of the agent and insurer through or by which such insurance is to be placed. The lender cannot interfere either directly or indirectly with the borrower’s free choice of an agent or an insurer. Also, the lender cannot collect a separate charge for the handling of the required insurance or refuse an adequate policy.
The Kentucky Department of Insurance has issued model form FI-02 to comply with the Kentucky statute. Based on a review by DocMagic’s Compliance Department, the Kentucky Notice of Free Choice of Agent or Insurer form (Form ID KYNCAI.MSC) will be updated to follow the model language, and will be available for all clients beginning March 7, 2019.
There is no action that is required to be taken by DocMagic customers in order to receive this change. For any additional questions or concerns, please contact customer service.
- Your DocMagic Compliance Team
