N.Y. Banking Law § 6-j: Proof of insurance

§ 6-j. Proof of insurance. 1. No exempt organization, as defined in

section five hundred ninety of this chapter, or licensed mortgage banker

which originates mortgage loans shall, at the time of title closing for

a loan secured by a one to four family residential real property, refuse

to accept a binder, issued by an insurer, or a duly authorized

representative of an insurer, licensed to do business in this state, as

evidence that hazard insurance has been procured for the mortgaged

premises. Nothing herein is intended to prohibit the mortgage banker or

exempt organization from requiring the borrower to also furnish a

receipt indicating that the annual or installment premium on such

insurance policy has been paid.

2. As used in this section, "binder" means a written document (a)

which includes the name and address of the insured and any additional

named insureds, mortgagees, or lienholders; a description of the

property insured; a description of the nature and amount of coverage

which shall be deemed to include the terms of the standard fire

insurance policy except as conspicuously noted on the binder; the

identity of the insurer and of the authorized representative executing

the binder; the effective date of coverage; the binder number or the

policy number where applicable to a policy extension, and (b) which

temporarily obligates the insurer to provide that insurance coverage

pending issuance of the insurance policy. The cancellation of such a

binder shall be governed at the minimum by the provisions of the

standard fire insurance policy and the provisions of the insurance law

applicable thereto.