Notice to insured of requirements for release of insurance proceeds.

(a) If a claim under an insurance policy for damage to residential real property is paid to the insured and a lender, and the lender holds all or part of the proceeds from the insurance claim payment pending completion of all or part of the repairs to the property, the lender shall notify the insured of each requirement with which the insured must comply for the lender to release the insurance proceeds.

(b) The notice required under this section must be provided no later than 14 days after the date the lender receives payment of the insurance proceeds.

(Act 2019-460, §2.)