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Texas Insurance Code - INS § 556.101. Prohibition on Certain Referrals or Solicitations to Purchase Insurance

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

(a) An individual who is an employee or agent of a depository institution or a subsidiary or affiliate of a depository institution may not directly or indirectly make a referral related to insurance to, or solicit the purchase of any insurance by, a customer knowing that the customer has applied for a loan or other extension of credit from a financial institution, before:

(1) the customer receives a written commitment relating to that loan or extension of credit; or

(2) if a written commitment has not been or will not be issued in connection with the loan or extension of credit, the customer receives notification of approval of that loan or extension of credit by the financial institution and the financial institution creates a written record of the approval.

(b) This section does not prohibit a depository institution from:

(1) informing a customer that insurance is required in connection with a loan;

(2) contacting a person in the course of a direct or mass mailing to a group of persons in a manner that is not related to the person's loan application or credit decision; or

(3) selling credit life, credit disability, credit property, or involuntary unemployment insurance that is:

(A) specifically authorized by this code;

(B) approved for sale in this state; and

(C) sold in connection with a credit transaction.

(c) This section does not apply to an insurance policy described by Section 556.151.

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Cite this article: FindLaw.com - Texas Insurance Code - INS § 556.101. Prohibition on Certain Referrals or Solicitations to Purchase Insurance - last updated January 01, 2024 | https://codes.findlaw.com/tx/insurance-code/ins-sect-556-101/

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