Texas Finance Code

§ 345.201 — PROPERTY INSURANCE

FI § 345.201Title 4. REGULATION OF INTEREST, LOANS, AND FINANCED TRANSACTIONS · Part B. LOANS AND FINANCED TRANSACTIONS · Ch. 345. RETAIL INSTALLMENT SALES · Art. E. INSURANCE

Statute text

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(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:

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Legislative history

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.