374.305. Conditioning loan on purchase of credit insurance from certain persons prohibited--freedom of selection of insurer required. - Missouri Statutes

Conditioning loan on purchase of credit insurance from certainpersons prohibited--freedom of selection of insurer required.

374.305. No financial institution, as defined in section374.300, shall, as a condition of a loan, require any debtor topurchase life or health insurance from an agent who is employedor retained by, or is a director or officer of the financialinstitution making the loan. When life or accident and sicknessinsurance is required or requested as additional security forindebtedness, the debtor shall be informed of the option offurnishing the insurance, or any portion thereof, throughexisting policies owned or controlled by the debtor, or ofprocuring and furnishing the required coverage through any agentor insurer authorized to transact such insurance business withinthis state.

(L. 1977 H.B. 40 § 2)