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 Texas Statutes (Last Updated: January 4, 2014)
 FINANCE CODE
 Title 4. REGULATION OF INTEREST, LOANS, AND FINANCED TRANSACTIONS
 Subtitle B. LOANS AND FINANCED TRANSACTIONS
 Chapter 348. MOTOR VEHICLE INSTALLMENT SALES  
 Subchapter C. INSURANCE  

  Sec. 348.208. CHARGES FOR OTHER INSURANCE AND FORMS OF PROTECTION INCLUDED IN RETAIL INSTALLMENT CONTRACT    

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  • (a) A retail buyer and retail seller may agree in a retail installment contract to include a charge for insurance coverage that is:

    (1) for a risk of loss or liability reasonably related to:

    (A) the motor vehicle;

    (B) the use of the motor vehicle; or

    (C) goods or services that:

    (i) are related to the motor vehicle; and

    (ii) may ordinarily be insured with a motor vehicle;

    (2) written on policies or endorsement forms prescribed or approved by the commissioner of insurance; and

    (3) ordinarily available in policies or endorsements offered to the public.

    (b) A retail installment contract may include as a separate charge an amount for:

    (1) motor vehicle property damage or bodily injury liability insurance;

    (2) mechanical breakdown insurance;

    (3) participation in a motor vehicle theft protection plan;

    (4) insurance to reimburse the retail buyer for the amount computed by subtracting the proceeds of the buyer's basic collision policy on the motor vehicle from the amount owed on the vehicle if the vehicle has been rendered a total loss;

    (5) a warranty or service contract relating to the motor vehicle;

    (6) an identity recovery service contract defined by Section 1306.003, Occupations Code; or

    (7) a debt cancellation agreement if the agreement is included as a term of a retail installment contract under Section 348.124.

    (c) Notwithstanding any other law, service contracts and debt cancellation agreements sold by a retail seller of a motor vehicle to a retail buyer are not subject to Chapter 101 or 226, Insurance Code.

    (d) Repealed by Acts 2011, 82nd Leg., R.S., Ch. 117, Sec. 26(3), eff. September 1, 2011.

    (e) Repealed by Acts 2011, 82nd Leg., R.S., Ch. 117, Sec. 26(3), eff. September 1, 2011.

    (f) Repealed by Acts 2011, 82nd Leg., R.S., Ch. 117, Sec. 26(3), eff. September 1, 2011.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 1107, Sec. 2, eff. June 18, 1999; Acts 1999, 76th Leg., ch. 1559, Sec. 2, eff. Aug. 30, 1999; Acts 2003, 78th Leg., ch. 1276, Sec. 10A.512, eff. Sept. 1, 2003. Amended by: Acts 2005, 79th Leg., Ch. 728 , Sec. 11.118, eff. September 1, 2005. Acts 2009, 81st Leg., R.S., Ch. 36 , Sec. 1, eff. September 1, 2009. Acts 2009, 81st Leg., R.S., Ch. 149 , Sec. 4, eff. September 1, 2009. Acts 2009, 81st Leg., R.S., Ch. 238 , Sec. 10, eff. September 1, 2009. Acts 2011, 82nd Leg., R.S., Ch. 91 , Sec. 10.002, eff. September 1, 2011. Acts 2011, 82nd Leg., R.S., Ch. 117 , Sec. 26(3), eff. September 1, 2011.