26-13-118. Favored agent or insurer.
(a) No person shall require as a condition to loaning money upon the security of any real or personal property, or to the selling of that property under contract, that the owner of the property to whom the money is to be loaned or the vendee of the property being sold, shall place, continue or renew any policy of insurance covering the property, or covering any liability related to the property or the use thereof, through a particular insurance agent or broker or in a particular insurer. This does not prevent the lender or vendor, upon a reasonable basis, from approving or disapproving of the insurer and representative selected to underwrite the insurance, but the basis for approval or disapproval shall relate only to:
(i) The adequacy and terms of the coverage with respect to the interest of the vendor or lender to be insured thereunder;
(ii) The financial standards to be met by the insurer; and
(iii) The ability of the insurer or representative to service the policy.