Sec. 342.402. CREDIT LIFE INSURANCE, CREDIT HEALTH AND ACCIDENT INSURANCE, OR INVOLUNTARY UNEMPLOYMENT INSURANCE. (a) On a loan made under this chapter that is subject to Subchapter E with a cash advance of $100 or more, a lender may:
(1) offer a borrower credit life insurance and credit health and accident insurance as additional protection for the loan; and
(2) offer involuntary unemployment insurance to the borrower at the time the loan is made.
(b) A lender may not require that the borrower accept or provide the insurance described by Subsection (a).
(c) On a secondary mortgage loan made under this chapter, a lender may require that a borrower provide credit life insurance and credit accident and health insurance as additional protection for the loan.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), eff. Sept. 1, 1999; Acts 1999, 76th Leg., ch. 909, Sec. 2.17, eff. Sept. 1, 1999.
Structure Texas Statutes
Title 4 - Regulation of Interest, Loans, and Financed Transactions
Subtitle B - Loans and Financed Transactions
Section 342.401. Required Property Insurance
Section 342.4021. Agreements Regarding Debt Suspension, Debt Cancellation, and Gap Waiver
Section 342.403. Maximum Amount of Insurance Coverage
Section 342.404. Insurance Notice
Section 342.405. Insurance May Be Furnished by Borrower
Section 342.406. Borrower's Failure to Provide Required Insurance
Section 342.407. Requirements for Including Insurance Charge in Contract
Section 342.408. Furnishing of Insurance Document to Borrower
Section 342.409. Lender's Duty if Insurance Is Adjusted or Terminated
Section 342.410. Payment for Insurance From Loan Proceeds
Section 342.411. Insurance or Other Gain Not Interest
Section 342.412. Action Under Subchapter Not Sale of Insurance
Section 342.413. Required Agent or Broker Prohibited
Section 342.414. Declination of Equal Insurance Coverage Prohibited