General and Special Laws of The State of Texas Passed By The Third Called Session of the Fifty-Seventh Legislature and the Regular Session of the Fifty-Eighth Legislature Page: 564
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Ch. 205 58TH LEGISLATURE-REGULAR SESSION
mium rates fixed by the State Board of Insurance under the article of the
Insurance Code of Texas which defines credit life insurance and credit
health and accident insurance and provides the State Board of Insurance
shall make and file the schedule of reasonable and adequate maximum
premium rates which may be charged by insurers on such insurance; nor
in any event, shall the amount charged to the borrower by the licensee for
such insurance exceed the amount of the premium paid to the insurer by
the licensee for such insurance, as computed at the time the charge to the
borrower is determined;
(2) The terms, provisions, coverage and form of any such insurance
policies shall satisfy and be in accordance with the particular requirements
of the respective applicable statutes;
(3) The maximum premium rates fixed by the State Board of Insurance
and the other requirements of such article shall apply to insurance re-
quired in connection with loans exceeding One Thousand Dollars ($1,000)
with the same force it applies to insurance required in connection with
loans of One Thousand Dollars ($1,000) and less;
(4) If such article of the Insurance Code is amended or repealed or
a similar statute is enacted under which the State Board of Insurance is
required to or may fix or approve maximum premium rates for credit life
insurance and credit health and accident insurance, the premium or identi-
fiable charge collected from the borrower for such insurance shall not ex-
ceed the maximum premium rate so fixed or approved; not in any event,
shall the amount charged to the borrower by the licensee for such insur-
ance exceed the amount of premium paid to the insurer by the licensee for
such insurance as computed at the time the charges to the borrower are
determined;
(5) Such insurance shall be written and sold in accordance with the
provisions of the Insurance Code of Texas which apply to group policies
or the provisions of the Insurance Code of Texas which apply to individual
policies; provided, however, that the maximum premium rates charged
a borrower by a licensee in connection with loans made under this Act
for credit insurance on which such rates and/or compensation by commis-
sions are not limited by law or fixed by the State Board of Insurance shall
never exceed the maximum premium charges and/or commissions fixed
by the State Board of Insurance for the sale of individual credit insurance
policies with the same coverage;
(6) Any such insurance required under Section 18 shall be written
for a time not in excess of one (1) month beyond the term of the loan con-
tract. The initial amount of credit life insurance whether written on a
group or individual policy shall not exceed the total amount repayable un-
der the contract of indebtedness and, where an indebtedness is repayable
in substantially equal installments, the amount of insurance shall at no
time exceed the scheduled or actual amount of unpaid indebtedness, which
ever is greater. The total amount of indemnity payable by credit acci-
dent and health insurance whether written on a group or individual policy
in the event of disability, as defined in the policy, shall not exceed the
total amount repayable under the contract of indebtedness; and the
amount of each periodic indemnity payment shall not exceed the scheduled
periodic installment payment on the indebtedness; and
(7) Only one (1) policy of life insurance and one (1) policy of health
and accident insurance may be in force with respect to any one (1) loan
contract at one (1) time.
(b) A licensee may, in addition, require a borrower, on loans with
a cash advance in excess of Three Hundred Dollars ($300), to insure tan.
gible personal property, when offered as security for a loan, against any
substantial risk or loss, damage or destruction for an amount not to exceed
564
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Texas. Legislature. General and Special Laws of The State of Texas Passed By The Third Called Session of the Fifty-Seventh Legislature and the Regular Session of the Fifty-Eighth Legislature, legislative document, 1963; [Austin, Texas]. (https://texashistory.unt.edu/ark:/67531/metapth221759/m1/900/?q=+date%3A1945-1972&rotate=90: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.