Tex. Finance Code § 342.402
This is the official text of Tex. Finance Code § 342.402, part of Texas’s Finance Code — regulates banks and other financial institutions.
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§ 342.402. CREDIT LIFE INSURANCE, CREDIT HEALTH AND ACCIDENT INSURANCE, OR INVOLUNTARY UNEMPLOYMENT INSURANCE.
Official statutory text
(a) On a loan made under this chapter that is subject to Subchapter E with a cash advance of $100 or more, a lender may:
(1) offer a borrower credit life insurance and credit health and accident insurance as additional protection for the loan; and
(2) offer involuntary unemployment insurance to the borrower at the time the loan is made.
(b) A lender may not require that the borrower accept or provide the insurance described by Subsection (a).
(c) On a secondary mortgage loan made under this chapter, a lender may require that a borrower provide credit life insurance and credit accident and health insurance as additional protection for the loan.
(1) offer a borrower credit life insurance and credit health and accident insurance as additional protection for the loan; and
(2) offer involuntary unemployment insurance to the borrower at the time the loan is made.
(b) A lender may not require that the borrower accept or provide the insurance described by Subsection (a).
(c) On a secondary mortgage loan made under this chapter, a lender may require that a borrower provide credit life insurance and credit accident and health insurance as additional protection for the loan.
Status: in_force · Read it on the official government site
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