6.2-411 - (Effective October 1, 2010) Requirements relating to insurance. - Virginia Statutes

§ 6.2-411. (Effective October 1, 2010) Requirements relating to insurance.

A. Any lender making a loan secured by a subordinate mortgage or deed oftrust, as defined in § 6.2-300, may require the borrower to provide:

1. Evidence of flood insurance if the security property is located in aspecial flood hazard area;

2. Evidence of fire and extended coverage insurance; and

3. Decreasing term life insurance, in an amount not exceeding the amount ofthe loan and for a period not exceeding the term of the loan.

B. At the option of the borrower, accident and health insurance andinvoluntary unemployment insurance may be provided by the lender.

C. Proof of all insurance issued in connection with loans subject to thischapter shall be furnished to the borrower within 10 days from the date theloan is closed.

(1987, c. 622, § 6.1-330.72; 1993, c. 774; 1995, c. 75; 1996, c. 243; 1998,cc. 69, 89; 2010, c. 794.)