Texas Finance Code 345.208 – Requirements for Including Insurance Charge in Contract or Agreement
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(a) For insurance to be included as an itemized charge in a retail installment contract or a retail charge agreement:
(1) the insurance must be written:
(A) at lawful rates;
(B) in accordance with the Insurance Code; and
(C) by a company authorized to do business in this state; and
(2) the disclosure requirements of this section must be satisfied.
(b) If the insurance is described by § 345.201, 345.202, or 345.207, the retail installment contract or retail charge agreement, or a separate written statement or specimen copy of a certificate or policy of insurance that is given to the retail buyer, must identify the:
(1) type of the coverage;
(2) term of the coverage; and
(3) amount of the premium for the coverage.
Terms Used In Texas Finance Code 345.208
- Contract: A legal written agreement that becomes binding when signed.
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(c) If the insurance is described by § 345.207, the retail installment contract must also clearly indicate that the coverage is optional.