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Texas Finance Code - FIN § 345.201. Property Insurance

Current as of January 01, 2024 | Updated by Findlaw Staff

(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:

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

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

(3) the potential liability.

(d) The insurance may not:

(1) cover unusual or exceptional risks;  or

(2) provide coverage not ordinarily included in policies issued to the public.

(e) The holder may include the cost of insurance provided under this section as a separate charge in the contract or agreement.

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Cite this article: FindLaw.com - Texas Finance Code - FIN § 345.201. Property Insurance - last updated January 01, 2024 | https://codes.findlaw.com/tx/finance-code/fin-sect-345-201/

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