Texas Finance Code

§ 345.210 — HOLDER'S DUTY IF INSURANCE IS ADJUSTED OR TERMINATED

FI § 345.210Title 4. REGULATION OF INTEREST, LOANS, AND FINANCED TRANSACTIONS · Part B. LOANS AND FINANCED TRANSACTIONS · Ch. 345. RETAIL INSTALLMENT SALES · Art. E. INSURANCE

Statute text

View on source

(a)If insurance for which a charge is included in or added to a retail installment contract or retail charge agreement is canceled, adjusted, or terminated, the holder shall, at the holder's option:

(1)apply the amount of the refund for unearned insurance premiums received by the holder to replace required insurance coverage; or

(2)credit the refund to the final maturing installments of the retail installment contract or retail charge agreement.

(b)If the amount to be applied or credited under Subsection (a) is more than the amount unpaid on the retail installment contract or retail charge agreement, the holder shall refund to the retail buyer the difference between those amounts.

(c)A cash refund is not required under this section if the amount of the refund is less than $1.

Legislative history

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