HOUSE DOCKET, NO. 490 FILED ON: 1/13/2015
HOUSE . . . . . . . . . . . . . . . No. 849
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The Commonwealth of Massachusetts
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PRESENTED BY:
Michael J. Finn
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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
An Act relative to the fiduciary responsibilities of lenders for non-payment of insurance premiums from escrowed accounts.
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PETITION OF:
Name: | District/Address: | Date Added: |
Michael J. Finn | 6th Hampden | 1/13/2015 |
HOUSE DOCKET, NO. 490 FILED ON: 1/13/2015
HOUSE . . . . . . . . . . . . . . . No. 849
By Mr. Finn of West Springfield, a petition (accompanied by bill, House, No. 849) of Michael J. Finn relative to the fiduciary responsibilities of lenders for non-payment of insurance premiums from escrowed accounts. Financial Services. |
The Commonwealth of Massachusetts
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In the One Hundred and Eighty-Ninth General Court
(2015-2016)
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An Act relative to the fiduciary responsibilities of lenders for non-payment of insurance premiums from escrowed accounts.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
SECTION 1. Chapter 167B of the General Laws, as appearing in the 2012 Official Edition, is hereby amended by inserting after section 11, the following section:
Section 12. If the lender, as a result of neglect, fails to pay the insurance premium on a property insurance policy on property secured by a mortgage when the insurance premium is due and there are sufficient escrowed funds on deposit to pay said insurance premium, and if the property owner suffers a loss as a result of this failure, then the lender is liable for the loss; except, however, that with respect to any loss, which would otherwise have been insured, the extent of the liability shall not exceed the coverage limits of any insurance policy, which has lapsed. The lender shall pay the insurance premium and any increased cost for securing a new insurance policy for a period of three (3) years. If the lender is late in paying the insurance premium, the lender shall pay the late fee charged by the insurance company.