An Act Relative to Non-Payment of Insurance Premiums from Escrowed Funds by Lending Institutions


This bill provides that if any lender, either a bank or mortgage company, fails to pay insurance premiums from escrowed funds that were available, then the lender is liable for uncovered or potential loss up to the limits on the expired policy; and the lender must pay the increased cost of a similar policy for three years; if any Lender is late in paying the insurance premium, the Lender must pay the late fee charged by the insurance company.