Tex. Ins. Code § 549.055 · Subchapter B. PROHIBITED PRACTICES
INSURANCE BINDER AS EVIDENCE OF INSURANCE.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) A lender that requires a borrower to secure insurance coverage before the lender will provide a residential mortgage or commercial real estate loan must accept an insurance binder as evidence of the required insurance and may not require the borrower to provide an original insurance policy instead of a binder if:
(1) the binder is issued by a licensed general property and casualty agent or a personal lines property and casualty agent who is appointed to represent the insurer whose name appears on the binder and who is authorized to issue binders;
(2) the binder is accompanied by evidence of payment of the required premium; and
(3) the binder will be replaced by an original insurance policy for the required coverage on or before the 30th day after the date the binder is issued.
(b) A property and casualty agent who issues an insurance binder under Subsection (a) must, on request, provide the lender with appropriate evidence for purposes of Subsection (a)(1).
Notes and commentary — not statutory text
History
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 548 (S.B. 1263), Sec. 2.03, eff. September 1, 2007.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/IN/htm/IN.549.htm
- Text hash
- sha256 b789c9fd33b7abd21a95febaaa13af26c81123ae47b0a3f71e2f9dd78615c98c
- 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
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.