A bill to amend the Truth in Lending Act to provide that any creditor who requires insurance to be purchased as a condition for granting an extension of credit may not require that such insurance be purchased from a source specified by such creditor.

Amends the Truth in Lending Act to permit any creditor to require insurance as a condition to an extension of credit. Prohibits any creditor from requiring credit insurance from a specific source.

Requires any creditor selling credit insurance to allow for cancellation within 20 days upon written notice that the debtor has secured adequate insurance from another source in accordance with regulations prescribed by the Board of Governors of the Federal Reserve System. Prohibits any cancellation if a loss has been incurred or benefits have been paid under such insurance. Requires the creditor to notify the debtor that insurance may be purchased from another source.