Sec. 342.403. MAXIMUM AMOUNT OF INSURANCE COVERAGE. (a) At any time the total amount of the policies of credit life insurance in force on one borrower on one loan contract may not exceed the greater of:
(1) the total amount repayable under the loan contract if the loan is an irregular transaction; or
(2) the greater of the scheduled or actual amount of unpaid indebtedness if the loan is a regular transaction.
(b) At any time the total amount of the policies of credit accident and health insurance or involuntary unemployment insurance in force on one borrower on one loan contract may not exceed the total amount repayable under the loan contract, and the amount of each periodic indemnity payment may not exceed the scheduled periodic installment payment on the loan.
Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), 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