KRS 304.12-140: Coercion in requiring insurance.

(1) No person engaged in the business of financing the purchase of real or personal

property or of lending money on the security of real or personal property shall

require, as a condition to financing or lending, or varying the terms and conditions

of the financing or lending, or as a condition to the renewal or extension of any loan

or credit or to the performance of any other act in connection with financing or

lending, that the purchaser or borrower, or his successors, shall negotiate through a

particular in surer, agent, or type of insurer, any policy of insurance or renewal

insuring the property or the life or health of the borrower.

(2) This section shall not prevent the reasonable exercise by any vendor or lender of its

right to approve or disapprove the i nsurer selected to underwrite the insurance, and

to determine the adequacy of the insurance offered.