Section 2502 - [Effective 9/10/2029] Designation of particular insurer, agent or broker in property financing transactions(a) No person, firm or corporation engaged in the business of financing the purchase of real or personal property, lending money on the security thereof, or servicing a mortgage thereon, and none of its trustees, directors, officers, agents or other employees, shall require, as a condition precedent to financing any such purchase or making any such loan or renewing or extending any such loan or mortgage or performing any other act in connection therewith, that the person, firm or corporation for whom the transaction is undertaken negotiate any policy of insurance or renewal thereof covering such property through a particular insurance company, agent or broker.(b) This section shall not prevent the exercise of any right to approve or disapprove of the insurance company selected to underwrite the insurance, except that in exercising such right, whether pursuant to this section or any other law, such person, firm, or corporation and its trustees, directors, officers, agents and employees shall not:(1) discriminate against an insurance company which issues a policy of insurance that is non-assessable as to any designated mortgagee or any secured creditor designated as a loss payee because of the insurer's type of organization, or(2) refuse to accept an insurance policy because it was not negotiated through a particular insurance company, agent or broker.(c) No such person, firm or corporation shall, in connection with compliance with a covenant to insure, require that the person, firm or corporation for whom the purchase of the property is financed or to whom a mortgage loan is made or who owns the property shall pay a fee or other charge as a condition to accepting, during the unexpired term of a policy then held, another policy of insurance in substitution therefor.Amended by New York Laws 2024, ch. 254,Sec. 1, eff. 8/28/2024.Amended by New York Laws 2019, ch. 217,Sec. 1, eff. 8/30/2019.Amended by New York Laws 2014, ch. 113,Sec. 2, eff. 7/22/2014.This section is set out more than once due to postponed, multiple, or conflicting amendments.