CA Insurance Code § 770 prohibits a lender to require the use of a particular insurance agent or broker. Additionally, § 772 requires the borrower to be given a written statement disclosing that the borrower has a choice in the insurance agent or broker that is used. § 772 further provides that it is prima facie evidence of compliance if the borrower gives the name of his/her chosen insurance agent or broker in his/her own handwriting. Docutech provides Cx2350 “CA Hazard Insurance Disclosure” for compliance with these sections. In the past, Docutech has not provided the ability for borrower to write in the name of the chosen insurance agent/broker. We are adding an enhancement to Cx2350 to allow lenders to choose whether they want to comply with the general requirement (i.e. disclosing that borrowers have a voluntary choice) or to follow the prima facie evidence provision (giving the borrower the ability to write in the name of an insurance agent/broker).
Our default behavior will be to continue to comply with the general requirement. However, if clients desire to use the prima facie evidence enhancement they can map field 187883 “Enable Evidence Of Borrowers Selection Of Hazard Insurance Agent Or Broker” to ‘Yes’.
We have added this enhancement to Stage and Stage 2 servers for testing and this change will take effect on May 8, 2024. If you have any question or concerns, please contact Client Support at 800.497.3584.
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