Every debtor, borrower, or purchaser of property with respect to which insurance of
any kind is required in connection with a debt or loan on the property shall be informed
by the creditor or lender of his or her right of free choice in the selection of the
agent and insurer through or by which such insurance is to be placed. There shall be no interference either directly or indirectly with the borrower's,
debtor's, or purchaser's free choice of an agent and of an insurer, the creditor or
lender shall not collect a separate charge for the handling of insurance required
in connection with a loan or extension of credit based on the consumer's choice of
agent or insurer, and the creditor or lender shall not refuse an adequate policy so
tendered by the borrower, debtor, or purchaser. Upon notice of any refusal of an adequate policy, the commissioner shall order the
creditor or lender to accept the tendered policy, if he or she determines that such
refusal is not in accordance with the requirements set out in subsection (2) of KRS 304.12-140. Failure to comply with the order of the commissioner shall be deemed a violation
of this section.
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