Texas Finance Code

§ 348.201 — PROPERTY INSURANCE

FI § 348.201Title 4. REGULATION OF INTEREST, LOANS, AND FINANCED TRANSACTIONS · Part B. LOANS AND FINANCED TRANSACTIONS · Ch. 348. MOTOR VEHICLE INSTALLMENT SALES · Art. C. INSURANCE

Statute text

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(a)A holder may request or require a retail buyer to insure the motor vehicle purchased under a retail installment transaction and accessories and related goods subject to the holder's security interest.

(b)The insurance and the premiums or charges for the insurance must bear a reasonable relationship to:

(1)the amount, term, and conditions of the retail installment contract; and

(2)the existing hazards or risk of loss, damage, or destruction.

(c)The insurance may not:

(1)cover unusual or exceptional risks; or

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Legislative history

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