{"data":{"id":"us-tx/tex.-finance-code-345.201","jurisdiction":"us-tx","citation":"Tex. Finance Code § 345.201","heading":"PROPERTY INSURANCE.","body":"(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.\n(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:\n(1) protection and indemnity insurance;\n(2) longshoremen's and harbor worker's compensation insurance; and\n(3) medical payments insurance.\n(c) The insurance and the premiums or charges for the insurance must bear a reasonable relationship to:\n(1) the amount, term, and conditions of the retail installment contract or retail charge agreement;\n(2) the existing hazards or risk of loss, damage, or destruction; or\n(3) the potential liability.\n(d) The insurance may not:\n(1) cover unusual or exceptional risks; or\n(2) provide coverage not ordinarily included in policies issued to the public.\n(e) The holder may include the cost of insurance provided under this section as a separate charge in the contract or agreement.\nActs 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.","path":["FINANCE CODE","TITLE 4. REGULATION OF INTEREST, LOANS, AND FINANCED TRANSACTIONS","SUBTITLE B. LOANS AND FINANCED TRANSACTIONS","CHAPTER 345. RETAIL INSTALLMENT SALES","SUBCHAPTER E. INSURANCE"],"source_url":"https://statutes.capitol.texas.gov/Docs/FI/htm/FI.345.htm#345.201","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:47:13Z","sha256":"7bc6adbdd8ee36616d46c594edc62e7651463bfedcf528e43793a1eefc067201","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-finance-code-345.158","next":"us-tx/tex.-finance-code-345.202"},"notice":"GroundRules: Original legal text. Not legal advice."}