Tex. Fin. Code § 345.206 · Subchapter E. INSURANCE
BUYER'S FAILURE TO PROVIDE EVIDENCE OF INSURANCE.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) If the retail buyer fails to present to the holder reasonable evidence that the buyer has obtained or maintained a coverage required by the retail installment contract or retail charge agreement, the holder may:
(1) obtain substitute insurance coverage that is substantially equivalent to or more limited than the coverage required; and
(2) add the amount of the premium advanced for the substitute coverage to the unpaid balance of the contract or agreement.
(b) Substitute insurance coverage under Subsection (a)(1):
(1) may be limited to coverage only of the interest of the holder or the interest of the holder and the buyer; and
(2) must be written at lawful rates and in accordance with the Insurance Code by a company authorized to do business in this state.
(c) If substitute insurance is obtained by the holder under Subsection (a), the amendment adding the premium or rescheduling the contract is not required to be signed by the retail buyer. The holder shall deliver to the buyer or send to the buyer's most recent address shown in the records of the holder specific written notice that the holder has obtained substitute insurance.
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 cf0eac09374dbed2c526435ce846ddcbfe8709c73a924200b54a8590e845746e
- 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 1 provision
Provisions in this library whose text cites Tex. Fin. Code § 345.206. Each shows the citation as that text prints it.
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.