Texas Finance Code

§ 307.051 — COLLATERAL PROTECTION INSURANCE

FI § 307.051Title 4. REGULATION OF INTEREST, LOANS, AND FINANCED TRANSACTIONS · Part A. INTEREST · Ch. 307. COLLATERAL PROTECTION INSURANCE · Art. B. REQUIREMENTS FOR COLLATERAL PROTECTION INSURANCE

Statute text

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(a)Collateral protection insurance is insurance coverage that:

(1)is purchased by a creditor after the date of a credit agreement;

(2)provides monetary protection against loss of or damage to the collateral or against liability arising out of the ownership or use of the collateral; and

(3)is purchased according to the terms of a credit agreement as a result of a debtor's failure to provide evidence of insurance or failure to obtain or maintain insurance covering the collateral, with the costs of the collateral protection insurance, including interest and any other charges incurred by the creditor in connection with the placement of collateral protection insurance, payable by a debtor.

(b)Collateral protection insurance includes insurance coverage that is purchased to protect:

(1)only the interest of the creditor; or

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Legislative history

Acts 2009, 81st Leg., R.S., Ch. 238 (S.B. 1965), Sec. 1, eff. September 1, 2009. Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 5, eff. September 1, 2011.