Texas Finance Code

§ 345.206 — BUYER'S FAILURE TO PROVIDE EVIDENCE OF INSURANCE

FI § 345.206Title 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)If the retail buyer fails to present to the holder reasonable evidence that the buyer has obtained or maintained a coverage required by the retail installment contract or retail charge agreement, the holder may:

(1)obtain substitute insurance coverage that is substantially equivalent to or more limited than the coverage required; and

(2)add the amount of the premium advanced for the substitute coverage to the unpaid balance of the contract or agreement.

(b)Substitute insurance coverage under Subsection (a)(1):

(1)may be limited to coverage only of the interest of the holder or the interest of the holder and the buyer; and

(2)must be written at lawful rates and in accordance with the Insurance Code by a company authorized to do business in this state.

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Legislative history

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