Statutes > Arkansas Statutes > Title 23 - Public Utilities and Regulated Industries > Subtitle 2 - Financial Institutions And Securities > Chapter 32 - General Provisions > Subchapter 2 - Powers and Duties of Financial Institutions Generally > § 23-32-206 - Casualty insurance -- Replacement cost coverage.

§ 23-32-206 - Casualty insurance -- Replacement cost coverage.

23-32-206. Casualty insurance -- Replacement cost coverage.

(a) A savings and loan association, financial institution, national bank, mortgage company, or any public or private mortgagee doing business in this state, when making a mortgage loan, may not require, as a condition or term of the mortgage, that the mortgagor purchase casualty insurance on property which is the subject of the mortgage in an amount in excess of the fair market value of the buildings or appurtenances on the mortgaged premises.

(b) This section shall not be construed as limiting the right of the mortgagor to purchase replacement cost coverage on the property which is the subject of the mortgage.