Rhode Island Gen. Law § 27-58-7 states:
(a) A financial institution shall prominently disclose in writing, in clear and concise language, to the institution’s customers, including in any advertisement or promotional material, pursuant to regulations prescribed by the commissioner, that insurance offered, recommended, sponsored, or sold by the financial institution:
(1) Is not a deposit;
(2) Is not insured by the Federal Deposit Insurance Corporation; and
(3) Is not guaranteed by the financial institution or an affiliated insured depository institution; and
(4) Where appropriate, involves investment risk, including potential loss of principal.
(b) A financial institution, for any loan for which insurance is required shall disclose in writing to the institution’s customers, in clear and concise language prior to the signing of a loan or mortgage application, that by law the purchase of insurance from that financial institution cannot be required as a condition of loan or mortgage approval.
Cx3750 is a multi-state disclosure that prints dynamic language for various states, including Rhode Island. To meet the disclosure requirements of RI Gen. Law § 27-58-7, we are adding the following language to Cx3750 for Rhode Island loans:
“Rhode Island law prohibits the purchase of insurance from the lender as a condition of loan or mortgage approval.
Any insurance offered, recommended, sponsored, or sold by the lender (1) is not a deposit; (2) is not insured by the Federal Deposit Insurance Corporation; (3) is not guaranteed by the lender or an affiliated insured depository institution; and (4) where appropriate, involves investment risk, including potential loss of principal.”
This change will be in effect on August 8, 2019. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.
DR 296373