General and Special Laws of The State of Texas Passed By The Second, Third and Fourth Called Sessions of the Sixty-Second Legislature and the Regular Session of the Sixty-Third Legislature Page: 184
78, 358, 110, lxiv, 1100 p. ; 25 cm.View a full description of this legislative document.
Extracted Text
The following text was automatically extracted from the image on this page using optical character recognition software:
63rd LEGISLATURE-REGULAR SESSION
and to the insurance agent or insurance broker indicated on the premium
finance agreement.
"(5) All statutory, regulatory, and contractual restrictions providing
that the insurance contract may not be canceled unless notice is given to
a governmental agency, mortgagee, or other third party shall apply where
cancellation is effected under the provisions of this section. The insurer
shall give the prescribed notice in behalf of itself or the insured to any
governmental agency, mortgagee, or other third party on or before the
second business day after the day it receives the notice of cancellation
from the premium finance company and shall determine the effective
date of cancellation taking into consideration the number of days notice
required to complete the cancellation.
"(6) Whenever a financed insurance contract is canceled, the insurer
shall return whatever unearned premiums are due under the insurance
contract to the premium finance company, either directly or via the agent
or agency writing the insurance, where an assignment of such funds is
included in the premium finance agreement for the account of the insured
or insureds, and
"(7) In the event that the crediting of return premiums to the account
of the insured results in a surplus over the amount due from the insured,
the premium finance company shall refund such excess to the insured,
provided that no such refund shall be required if it amounts to less than
one dollar ($1).
"Art. 12.18. Assignments
"Unless the insured has notice of actual or intended assignment of a
premium finance agreement, payment thereunder by him to the last
known holder of the agreement shall be binding upon all subsequent
holders or assignees.
"Art. 12.19. Restrictions on Premium Finance Agreements
"No premium finance agreement shall contain any provision whereby:
"(1) In the absence of default of the insured, the premium finance
company holding the agreement may, arbitrarily and without reasonable
cause, accelerate the maturity of any part or all of the amount owing
thereunder; reasonable cause shall, without limitation, include a pro-
ceeding in bankruptcy, receivership, or insolvency being instituted by or
against the insured, or the insolvency of, suspension of business, or
cessation of the right to conduct business by an insurance company
writing policies that are financed for the insured under the premium
finance agreement; or
"(2) No licensee shall take any instrument whereby borrower waives
any right accruing to him under the provisions of this chapter;
"(3) No licensee shall take any instrument which has not been fully
completed and executed by the insured;
"(4) No licensee shall induce or permit any person, or husband and
wife, to be obligated, directly or indirectly, under more than one insurance
premium finance agreement under this chapter at the same time for the
purpose of obtaining a higher authorized charge than would otherwise be
permitted by this chapter;
"(5) No licensee shall take an assignment of wages as security for
any insurance premium finance agreement made under this chapter;
"(6) No licensee shall take a lien upon real estate as security for any
insurance premium finance agreement made under this chapter, except
such lien as is created by law upon the recording of an abstract of
judgment;
184Ch. 86
Upcoming Pages
Here’s what’s next.
Search Inside
This document can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Legislative Document.
Texas. Legislature. General and Special Laws of The State of Texas Passed By The Second, Third and Fourth Called Sessions of the Sixty-Second Legislature and the Regular Session of the Sixty-Third Legislature, legislative document, 1973; [Austin, Texas]. (https://texashistory.unt.edu/ark:/67531/metapth221792/m1/796/: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.