Tex. Finance Code § 348.201
This is the official text of Tex. Finance Code § 348.201, part of Texas’s Finance Code — regulates banks and other financial institutions.
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§ 348.201. PROPERTY INSURANCE.
Official statutory text
(a) A holder may request or require a retail buyer to insure the motor vehicle purchased under a retail installment transaction and accessories and related goods subject to the holder's security interest.
(b) 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; and
(2) the existing hazards or risk of loss, damage, or destruction.
(c) The insurance may not:
(1) cover unusual or exceptional risks; or
(2) provide coverage not ordinarily included in policies issued to the public.
(d) The holder may include the cost of insurance provided under this section as a separate charge in the contract.
(b) 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; and
(2) the existing hazards or risk of loss, damage, or destruction.
(c) The insurance may not:
(1) cover unusual or exceptional risks; or
(2) provide coverage not ordinarily included in policies issued to the public.
(d) The holder may include the cost of insurance provided under this section as a separate charge in the contract.
Status: in_force · Read it on the official government site
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