Rule 5-3-1.4 - Insurance: Property insurance may be written in connection with any loan on which real or personal property is taken as collateral on the following terms and conditions:
1. Personal property insurance shall be written for an amount not to exceed the lesser of the total sum of payments to be paid by the borrower to the lender according to the schedule of payments or the value of the personal property. The Licensee may rely on borrower's representation of the value of personal property; however, if a motor vehicle is part of the collateral for the loan, its value may be established by a nationally recognized evaluation guide. The borrower shall furnish a list of collateral indicating the value of each item.2. The original term of insurance must not exceed the contractual term on the loan. If the term and loan amount of insurance is less than the term and amount of the loan, the term and amount of the insurance must be shown on the contract and on the ledger card and/or computer generated copy.Miss. Code Ann. § 75-67-129; Miss. Code Ann. § 75-67-243; Effective date March 30, 2006