(2) The terms of the agreement for insurance, including the amount of insurance and the premium therefor, shall be agreed upon by the department and the organization or agency.
(3) Insurance provided under this section may not exceed coverage of the loan balance for property secured by a mortgage or trust deed to the department.
(4) If a qualified borrower borrows an amount under this chapter that is 80 percent or less of the net appraised value of the home or farm that secures the loan, the department may approve the loan without requiring insurance. [1989 c.677 §3; 1993 c.192 §2; 1995 c.238 §2; 2005 c.625 §47]