1. (a) Lender-placed insurance shall become effective no earlier than the date of lapse of insurance upon mortgaged real property subject to the terms of a mortgage agreement and/or any other state or federal law requiring the same.

2. (b) Individual lender-placed insurance shall terminate on the earliest of the following dates:

   1. (1) The date the insurance that is acceptable under the mortgage agreement becomes effective, subject to the mortgagor providing sufficient evidence of such acceptable insurance.
   2. (2) The date the applicable real property no longer serves as collateral for a mortgage loan pursuant to a mortgage agreement.
   3. (3) Such other date as specified by the individual policy or certificate of insurance.
   4. (4) Such other date as specified by the lender or servicer.
   5. (5) The termination date of the policy.
3. (c) An insurance charge shall not be made to a mortgagor for lender-placed insurance for a term longer than the scheduled term of the lender-placed insurance, nor may an insurance charge be made to the mortgagor for lender-placed insurance before the effective date of the lender-placed insurance.

History of Section.
P.L. 2022, ch. 404, § 7, effective June 30, 2022; P.L. 2022, ch. 405, § 7, effective June 30, 2022.