Sec. 38a-309. (Formerly Sec. 38-100). Binders for temporary insurance. Written binder as evidence of insurance on mortgaged property.
Sec. 38a-309. (Formerly Sec. 38-100). Binders for temporary insurance. Written binder as evidence of insurance on mortgaged property. (a) Binders or other
contracts for temporary insurance may be made, orally or in writing, for a period which
shall not exceed sixty days, and shall be deemed to include all the terms of a standard
fire insurance policy and all such applicable endorsements, approved by the commissioner, as are designated in such contract of temporary insurance, except that the cancellation clause of such standard fire insurance policy, and the clause thereof specifying
the hour of the day at which the insurance shall commence, may be superseded by the
express terms of such contract of temporary insurance.
(b) Notwithstanding the provisions of subsection (a) of this section, no person shall,
at the time of title closing for a loan secured by a one-to-four-family residential property,
refuse to accept a written binder issued by an insurer, or a duly authorized representative
of an insurer, licensed to do business in this state, as evidence that hazard insurance has
been procured for the mortgaged premises. The commissioner may require such binders
to contain any additional information to permit such binders to comply with the reasonable requirements of the Federal National Mortgage Association or Federal Home Loan
Mortgage Corporation for the purchase of mortgage loans. Nothing in this section shall
be construed to prohibit a person from requiring the borrower to also furnish a receipt
indicating that the annual or installment premium on such insurance policy has been
paid for twelve months following the date of closing, or for less than twelve months at
the option of the person.
(1949 Rev., S. 6107; P.A. 89-48, S. 1; P.A. 99-145, S. 22, 23.)
History: P.A. 89-48 increased to 60 the number of days a binder may be effective; Sec. 38-100 transferred to Sec. 38a-309 in 1991; P.A. 99-145 designated existing language as Subsec. (a) and added new Subsec. (b) re binders as evidence
of hazard insurance on mortgaged premises at time of title closing, effective June 8, 1999.
Annotation to former section 38-100:
Cited. 217 C. 340.