Pennsylvania law Sections 7309 and 7310 prohibit coercing or conditioning financing and property purchases on the use of specific insurance policies, and forbid offering free insurance as an inducement for buying property. Violations can result in criminal charges and fines. The laws aim to prevent unfair practices in insurance and property transactions.
Unlawful coercion occurs when a person requires the use of a specific insurance company or policy as a condition for financing or renewing a loan, which is prohibited by law.
No, Pennsylvania law prevents anyone from approving or disapproving the insurance company selected by the borrower.
Offering free insurance to induce property purchases is a misdemeanor of the third degree, which can result in criminal charges and fines.
Individuals other than responsible officers or employees of corporations, partnerships, or associations who commit these offenses can be fined up to $1,000.