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ROBERT L. EHRLICH, JR., Governor Ch. 615
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(i) Accept the value placed on the improvements by the insurer; or
(ii) Use the value placed on the improvements [that is determined]
by the lender's appraisal of the [real property] IMPROVEMENTS.
(5) A lender may not require that the insurance be purchased through a
particular insurance producer or insurance company.
(6) ANY PROPERTY INSURANCE COVERAGE REQUIRED BY A LENDER
SHALL BEAR A REASONABLE RELATION TO THE EXISTING RISK OF LOSS.
(b) (1) A violation of this section shall entitle the borrower to:
(i) Seek an injunction to prohibit the lender who has engaged or is
engaging in the violation from continuing or engaging in the violation;
(ii) Reasonable attorney's fees; and
(iii) Damages directly resulting from the violation.
(2) A violation of this section does not affect the validity of the first
mortgage or first deed of trust securing the loan.
12-410.
(f) (1) (i) 1. In this paragraph[,] THE FOLLOWING WORDS HAVE THE
MEANINGS INDICATED.
2. "IMPROVEMENTS" MEANS FIXTURES ATTACHED
BUILDINGS OR STRUCTURES ERECTED UPON OR AFFIXED TO REAL PROPERTY THAT
ENHANCE THE VALUE OF THE REAL PROPERTY.
3. ["property] "PROPERTY insurance coverage" means
property insurance against losses caused by perils that commonly are covered in
insurance policies described with terms similar to "standard fire" or "standard fire
with extended coverage".
4. A. "REPLACEMENT COST" MEANS THE AMOUNT
NEEDED TO REPAIR DAMAGE TO OR REBUILD IMPROVEMENTS ON REAL PROPERTY
TO RESTORE THE IMPROVEMENTS TO THEIR PRE-LOSS CONDITION.
B. "REPLACEMENT COST" DOES NOT INCLUDE THE VALUE OF
LAND.
(ii) A lender may not require a borrower, as a condition to receiving
or maintaining a secondary mortgage loan, to provide or purchase property insurance
coverage against risks to any improvements on any real property in an amount
exceeding the replacement [value] COST of the improvements on the real property.
(iii) In determining the replacement [value] COST of the
improvements on any real property, the lender may:
1. Accept the value placed on the improvements by the
insurer; or
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