(205 ILCS 670/15b) (from Ch. 17, par. 5417)
Sec. 15b.
Property insurance.
(a) A licensee may require the obligor to provide property damage
insurance
on real and personal property, all or part of which serves as security
against reasonable risks of loss, damage, and destruction in connection
with loans exceeding an original principal amount of $500. The amount and
term of the insurance shall be reasonable in relation to the amount and
term of the loan contract and the type and value of the property, and the
insurance shall be procured in accordance with the insurance laws of this
State. The purchase of such insurance through the licensee or from an
agent, broker or insurer specified by the licensee shall not be a condition
precedent to the granting of the loan. The premium charged shall not
exceed that charged by the insurance company.
(b) If the obligor fails to furnish evidence that he has procured
insurance on the property, the licensee may purchase substitute insurance that
may be substantially equivalent to or more limited than coverage the obligor is
required to maintain. Such insurance must comply with the Collateral
Protection Act.
(Source: P.A. 90-437, eff. 1-1-98.)
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