More Insurance requirements

[Philip L.]

I am in the process of refinancing a rental property - my lender is asking for changes to my current insurance policy, most have been made however:

My lender is saying - The insurance company will not put us as a Payee Loss, which is a requirement for us to approve insurance. They are willing to put us as an additional insured as long as you reach out to them to add us. However we need both and they cannot satisfy one of the conditions.

My insurance agent is saying: the insurance company will not add them as all three, mortgagee, loss payee and Liability additional insured. This request is very unusual apparently.

My lender is now saying I should cancel my current policy and go with their recommended insurer

Below is the full requirements the lender has asked for

General:

1. 30 days notice of cancellation to the lender must apply and be evidenced

2. Insurance must be submitted on accord certificates

3. Paid in full receipt is required for approval

4. Must meet AM best requirements

Property:

1. Lender must be included as mortgagee and loss payee

2. Coverage must be special form / RCV / no co-insurance. All items must be specifically evidenced

Liability:

1. Lender must be included as additional insured

2. Insurance must be primary and noncontributory

3. Confirm this is the only location on the policy

4. Minimum required coverage of $1,000,000 per occurrence / $2,000,000 aggregate

5. Evidence the deducible, even if 0 "

I've completed a number of mortgage transactions in the past and all I had to do was show proof of insurance, I am unclear of what to do next, just cancel my current policy and go with theirs's or am I misunderstanding something?