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Texas Statutes (Last Updated: January 4, 2014) |
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INSURANCE CODE |
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Title 5. PROTECTION OF CONSUMER INTERESTS |
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Subtitle E. PREMIUM FINANCING |
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Chapter 651. FINANCING OF INSURANCE PREMIUMS |
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Subchapter D. PREMIUM FINANCE AGREEMENTS |
Sec. 651.151. REQUIRED FORM AND CONTENTS OF PREMIUM FINANCE AGREEMENT
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(a) A premium finance agreement must be in writing on a form approved by the commissioner.
(b) A premium finance agreement must be dated and signed by the insured. An agreement may be signed on behalf of the insured by the insured's agent if:
(1) the agreement contains policies for other than personal, family, or household purposes; and
(2) the premiums for the policies exceed $1,000.
(c) A premium finance agreement must contain:
(1) the name and business address of the insurance agent or broker negotiating the related insurance contract;
(2) the name and residence or business address of the insured as specified by the insured;
(3) the name and business location of the insurance premium finance company to which payments are to be made;
(4) a description of each insurance contract involved;
(5) the amount of the premium for each insurance contract;
(6) the total amount of the premiums for all insurance contracts;
(7) the amount of any down payment;
(8) the principal balance, which is the difference between the amounts under Subdivisions (6) and (7);
(9) the total amount of the finance charge, which must describe each amount included and use the term "finance charge"; and
(10) the balance payable by the insured, which is the sum of the amounts under Subdivisions (8) and (9).