I don't think there would be a prohibition. You might have more of a fight that you normally enjoy adding VSI if the borrower claims insurance wasn't needed because he was gone and the car was on blocks, etc... But maintaining insurance is a condition of the loan, not an attempt at collection or imposing a fee of some sort to make up for any reduced interest rate.
You would have a similar issue if it was a mortgage. If there was flood coverage that lapsed, you'd have to force place that as well.
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AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell