Tex. Fin. Code § 345.201 · Subchapter E. INSURANCE
PROPERTY INSURANCE.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) A holder may request or require a retail buyer to insure the property purchased or improved under a retail installment transaction, including the purchase of title insurance on real property that is involved in the retail installment contract or retail charge agreement and that is subject to a security interest of the holder, including a lien.
(b) If the property is a boat that may be enrolled or licensed as a yacht with the United States Coast Guard and subject to the maritime laws of the United States, a holder may also require a retail buyer to provide in connection with the boat:
(1) protection and indemnity insurance;
(2) longshoremen's and harbor worker's compensation insurance; and
(3) medical payments insurance.
(c) 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 or retail charge agreement;
(2) the existing hazards or risk of loss, damage, or destruction; or
(3) the potential liability.
(d) The insurance may not:
(1) cover unusual or exceptional risks; or
(2) provide coverage not ordinarily included in policies issued to the public.
(e) The holder may include the cost of insurance provided under this section as a separate charge in the contract or agreement.
Notes and commentary — not statutory text
History
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/FI/htm/FI.345.htm
- Text hash
- sha256 055c6f5eb4d2aca45f528965e43713978cd9d21560d826ba8da287f77d8f4fc9
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
Cited by 3 provisions
Provisions in this library whose text cites Tex. Fin. Code § 345.201. Each shows the citation as that text prints it.
Finance Code
- Tex. Fin. Code § 345.205INSURANCE MAY BE FURNISHED BY BUYER.Printed as Section 345.201, 345.202, or 345.207
- Tex. Fin. Code § 345.208REQUIREMENTS FOR INCLUDING INSURANCE CHARGE IN CONTRACT OR AGREEMENT.Printed as Section 345.201, 345.202, or 345.207
- Tex. Fin. Code § 345.214ADDING TO RETAIL INSTALLMENT CONTRACT PREMIUMS FOR INSURANCE ACQUIRED AFTER TRANSACTION.Printed as Sections 345.201, 345.203, 345.207, and 345.208
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.