Section 6-27-19 - Insurance(a) Each member home loan shall be covered by a title insurance policy on the current standard American Land Title Association (ALTA) form issued by a title insurer licensed to do business in the State of Hawaii. The amount of coverage shall be at least equal to the amount of the loan and the benefits of the policy shall run to the system. The Alta Policy shall insure against any mechanic's and materialman's lien.(b) The mortgaged property shall be covered by fire and extended coverage insurance equal to the full replacement costs of the improvements on the mortgaged property without deduction for depreciation. If the mortgaged property is located in an area identified and designated as a flood hazard area by the Federal Department of Housing and Urban Development, flood insurance under the Federal Flood Disaster Protection Act of 1973, Public Law No. 93-234, shall be obtained. If the mortgaged property is a condominium apartment, the association of owners shall have and keep in full force and effect a blanket fire and extended coverage insurance policy. The lender shall assure that the system is named as loss payee on the policies.[Eff 2/9/89] (Auth: HRS §§ 88-28, 88-119.5) (Imp: HRS §§ 88-119, 88-119.5)