RS 22:714 Substitution of policies; charge by lender prohibited; penalty

§714.  Substitution of policies; charge by lender prohibited; penalty

A.  It shall be unlawful for any person, firm, or corporation engaged in financing the purchase of real or personal property, or of lending money on the security of real or personal property, or for any trustee, director, officer, agent, or other employee of any such person, firm or corporation, to require, directly or indirectly, that a borrower, or any other person, in obtaining insurance coverage on the property, pay a service charge or fee of any kind to substitute the insurance policy of one insurance company for that of another.

B.  Any violation of any of the provisions of this Section by any person, firm, or corporation is declared to be a misdemeanor and is punishable by a fine of not less than one hundred dollars or more than five hundred dollars, or imprisonment for not less than sixty days or more than one year, or both fine and imprisonment, for each offense, in the discretion of the court.

Added by Acts 1958, No. 211, §§1, 2; Redesignated from R.S. 22:1524 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2009, No. 503, §1.