Sec. 345.201. PROPERTY INSURANCE. (a) A holder may request or require a retail buyer to insure the property purchased or improved under a retail installment transaction, including the purchase of title insurance on real property that is involved in the retail installment contract or retail charge agreement and that is subject to a security interest of the holder, including a lien.
(b) If the property is a boat that may be enrolled or licensed as a yacht with the United States Coast Guard and subject to the maritime laws of the United States, a holder may also require a retail buyer to provide in connection with the boat:
(1) protection and indemnity insurance;
(2) longshoremen's and harbor worker's compensation insurance; and
(3) medical payments insurance.
(c) The insurance and the premiums or charges for the insurance must bear a reasonable relationship to:
(1) the amount, term, and conditions of the retail installment contract or retail charge agreement;
(2) the existing hazards or risk of loss, damage, or destruction; or
(3) the potential liability.
(d) The insurance may not:
(1) cover unusual or exceptional risks; or
(2) provide coverage not ordinarily included in policies issued to the public.
(e) The holder may include the cost of insurance provided under this section as a separate charge in the contract or agreement.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Structure Texas Statutes
Title 4 - Regulation of Interest, Loans, and Financed Transactions
Subtitle B - Loans and Financed Transactions
Chapter 345 - Retail Installment Sales
Section 345.201. Property Insurance
Section 345.203. Maximum Amount of Insurance Coverage
Section 345.204. Insurance Statement
Section 345.205. Insurance May Be Furnished by Buyer
Section 345.206. Buyer's Failure to Provide Evidence of Insurance
Section 345.207. Charges for Other Insurance Included in Retail Installment Contract
Section 345.208. Requirements for Including Insurance Charge in Contract or Agreement
Section 345.209. Delivery of Insurance Document to Buyer
Section 345.210. Holder's Duty if Insurance Is Adjusted or Terminated
Section 345.211. Gain or Advantage From Insurance Not Additional Charge
Section 345.212. Nonfiling Insurance
Section 345.213. Inclusion of Insurance Premiums
Section 345.215. Effect of Adding Premium to Contract or Agreement