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The lessor may demand insurance coverage on the leased chattel for the original term of the contract, as one of the requirements for the execution of the lease contract.\nThe limits and coverage of the insurance policy shall be those that cover losses, physical damage to the chattel, and public liability.\nSaid policies shall include the lessor as the beneficiary and additional insured person.\nThe lessor may apply for an insurance contract in the lessee’s name, after obtaining his/her approval. In addition, the lessor shall provide the lessee with a copy of the insurance certificate or policy as soon as he/she obtains it from the insurance company.\nEvery institution engaged in financing the acquisition of motor vehicles by individuals, through a lease, shall provide to each individual requesting said financing, a form stating the following written notice in a clear and prominent text and in captions:\n'IMPORTANT NOTICE: IT IS THE RIGHT OF EVERY CONSUMER TO CHOOSE HIS/HER PREFERRED INSURANCE AGENT OR BROKER OR INSURANCE COMPANY TO OBTAIN ANY INSURANCE NEEDED IN RELATION TO THE ACQUISITION OF A MOTOR VEHICLE.

NOTICE: IT IS THE RIGHT OF EVERY CONSUMER TO CHOOSE HIS/HER PREFERRED INSURANCE AGENT OR BROKER OR INSURANCE COMPANY TO OBTAIN ANY INSURANCE NEEDED IN RELATION TO THE ACQUISITION OF A MOTOR VEHICLE. NO FINANCIAL INSTITUTION SHALL REQUIRE THAT THE CONSUMER OBTAIN, AS A CONDITION FOR THE FINANCING OF SAID VEHICLE, INSURANCE FROM A PARTICULAR AGENT OR BROKER OR INSURANCE COMPANY. HOWEVER, THE FINANCIAL INSTITUTION MAY ESTABLISH STANDARDS IN TERMS OF THE TYPE OF INSURANCE COVERAGE OR THE EXTENT OF FINANCIAL SOLIDITY IT SHALL REQUIRE FROM THE INSURANCE COMPANY.'\nFurthermore, before the applicant signs the aforesaid loan or financial lease contract, the financial institution shall obtain from the individual a written confirmation that he/she received the notice described above. The financial institution shall keep said confirmation in its records during the effective term of the contract.\nThe insurance payout for a claim for damages to an insured vehicle shall not be retained nor applied by the financial institution to the vehicle’s lease payments in arrears or to other debts existing between the buyer and the financial entity generated under other contracts or obligations.

r applied by the financial institution to the vehicle’s lease payments in arrears or to other debts existing between the buyer and the financial entity generated under other contracts or obligations. The insurance payment shall be issued in the name of the lessee of the financial institution that meets the requirements of §§ 2131-2144 of Title 20, and with Regulations No. 3590 of the Department of Consumer Affairs. To such effects, the acceptance of a quote from the body shop shall be understood as the three parties have agreed to repair the damages of the vehicle.\nHistory —Aug. 13, 1994, No. 76, § 13; July 23, 2008, No. 126, § 1, eff. 90 days after July 23, 2008; Feb. 9, 2012, No. 41, § 1.