Texas Insurance Code 651.152 – Other Required Contents
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Terms Used In Texas Insurance Code 651.152
- Annual percentage rate: The cost of credit at a yearly rate. It is calculated in a standard way, taking the average compound interest rate over the term of the loan so borrowers can compare loans. Lenders are required by law to disclose a card account's APR. Source: FDIC
- Finance charge: The total cost of credit a customer must pay on a consumer loan, including interest. The Truth in Lending Act requires disclosure of the finance charge. Source: OCC
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
In addition to the items required by Section 651.151, a premium finance agreement must contain the following, as applicable:
(1) the finance charge expressed as an annual percentage rate, using the term “annual percentage rate”;
(2) the number of installments required under the agreement;
(3) the amount of each installment expressed in dollars;
(4) the due date or period of each installment;
(5) the amount or method of computing the amount of any default or delinquency charge that is payable in the event of late payment; and
(6) the method of computing any unearned portion of the finance charge in the event of prepayment of the obligation.