Texas Insurance Code

§ 549.056 — CERTAIN ACTIONS BY LENDER NOT PROHIBITED

IN § 549.056Title 5. PROTECTION OF CONSUMER INTERESTS · Part C. DECEPTIVE, UNFAIR, AND PROHIBITED PRACTICES · Ch. 549. PROHIBITED PRACTICES RELATING TO PROPERTY INSURANCE · Art. B. PROHIBITED PRACTICES

Statute text

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(a)This subchapter does not prevent a lender from requiring evidence to be produced before the commencement or renewal of a risk that insurance has been obtained that:

(1)has a fixed termination date;

(2)except as provided by Section 549.0551, provides adequate coverage in an amount sufficient to cover the debt or loan; and

(3)will not be canceled without reasonable notice to the lender.

(b)This subchapter does not prevent a lender from requiring insurance from an insurer that is authorized to engage in business in this state and that has a licensed resident agent in this state.

(c)This subchapter does not prevent a lender from refusing to accept or approve insurance from a particular insurer on reasonable and nondiscriminatory grounds relating to the financial soundness of the insurer or the insurer's ability to service the policy.

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Legislative history

Acts 2005, 79th Leg., Ch. 69 (H.B. 2761), Sec. 2, eff. May 17, 2005. Acts 2007, 80th Leg., R.S., Ch. 548 (S.B. 1263), Sec. 2.04, eff. September 1, 2007.