Banking and Finance Law Daily Wrap Up, CONSUMER CREDIT—Kentucky expands available loan insurance coverage, (Apr 9, 2014)

By Charles A. Menke, J.D.

Amendments to Kentucky’s consumer loan law will allow lenders to request and secure credit property insurance, in addition to property damage coverage, on personal property securing a loan. A lender is prohibited from charging a borrower for the cost of any credit property insurance unless the insurer agrees that it will not exercise its right to subrogation against the borrower under the licensee's policy. If any insurance is written in connection with a loan transaction, the lender must deliver to the borrower a policy, certificate, memorandum, or other disclosure showing the coverage and cost within 30 days from the date of the loan.

The law (H.B. 316) takes effect 90 days after adjournment of the legislature.

LegislativeActivity: ConsumerCredit KentuckyNews Loans