Texas Finance Code

§ 342.403 — MAXIMUM AMOUNT OF INSURANCE COVERAGE

FI § 342.403Title 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)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.

Legislative history

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), eff. Sept. 1, 1999.