6.2-415 - (Effective October 1, 2010) Lender not to cancel insurance policy at time of refinancing under certain circumstances. - Virginia Statutes

§ 6.2-415. (Effective October 1, 2010) Lender not to cancel insurance policyat time of refinancing under certain circumstances.

A. No lender shall require a borrower or debtor, for the protection ofproperty securing the credit or lien, to cancel an existing insurance policyon such property at the time of a refinancing solely to change the effectivedates of coverage under the policy, unless the expiration date of such policyis within four months of the date of the closing.

B. The provision of subsection A shall not prevent a lender from requesting anew policy when the coverage under the existing policy is inadequate or thereis reasonable concern over the soundness or services of the insurer.

(1995, c. 175, § 6.1-2.9:6; 2010, c. 794.)