Texas Finance Code

§ 342.402 — CREDIT LIFE INSURANCE, CREDIT HEALTH AND ACCIDENT INSURANCE, OR INVOLUNTARY UNEMPLOYMENT INSURANCE

FI § 342.402Title 4. REGULATION OF INTEREST, LOANS, AND FINANCED TRANSACTIONS · Part B. LOANS AND FINANCED TRANSACTIONS · Ch. 342. CONSUMER LOANS · Art. I. INSURANCE

Statute text

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(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.

Legislative history

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.