ADVOKS GLOBAL · KENYA
Insurance Act
71A. Choice of insurer for loans
Edition: 2023-12-11 · In force
71A. Choice of insurer for loans
(1)A bank shall—(a)inform a loanee, in writing, that the loanee has a right to select an underwriter or broker from a list of underwriters or brokers licensed by the Authority;(b)inform a loanee, in writing, that the loanee has an option to forfeit the right to select an underwriter or broker;(c)not prescribe or assign an underwriter or broker to a loanee, unless the loanee forfeits in writing the right to select an underwriter or broker; and(d)update the list of licensed brokers or underwriters availed to loanees regularly and ensure that underwriters or brokers under statutory management are excluded from the list.(2)A bank that contravenes the provisions of subsection (1) commits an offence and shall upon conviction be liable to a fine not exceeding five million shillings.