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Can a bank require credit life insurance as a condition of a loan?

April 26, 2017answer Bank condition credit Life Insurance loan require

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Can a bank require credit life insurance as a condition of a loan?

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Yes. A bank can require the assignment of credit life insurance for a loan. But a bank cannot require that the insurance be purchased from it or any affiliate according to the federal anti-tying laws (12 USC 1972, 12 CFR 225).