New Jersey Administrative Code
Title 3 - BANKING
Chapter 7 - SAFE AND SOUND METHODS OF BANKING
Subchapter 2 - INTERNAL OPERATIONS PROCEDURE
Section 3:7-2.1 - Review of fire insurance

Banks, savings banks and State associations shall periodically review all fire insurance policies supporting loans secured by mortgages and real estate owned by the bank, savings bank or State association to ascertain if the amount of insurance is sufficient considering present values, especially where the policy contains a coinsurance clause. The bank, savings bank or State association may use other prudent means instead of periodic review, such as obtaining insurance for inadequate coverage, to protect itself from exposure to loss from insufficient insurance coverage on these properties.