Texas § FI.347.203 - CONSUMER'S FAILURE TO OBTAIN REQUIRED INSURANCE

§ FI.347.203. CONSUMER'S FAILURE TO OBTAIN REQUIRED INSURANCE

CONSUMER'S FAILURE TO OBTAIN REQUIRED INSURANCE. (a) If at any time the consumer fails to obtain the required insurance, the creditor may: (1) treat the failure as a default; or (2) purchase the required insurance and add to the unpaid balance of the credit transaction the premium of the insurance and interest, at the interest rate or time price differential applicable to the transaction on the date the insurance is purchased. (b) The insurance purchased under Subsection (a) may be in an amount up to but not in excess of the prepayment amount under Section 347.155 if the balance were prepaid on the date that the insurance is purchased. (c) If insurance is purchased under Subsection (a), the creditor shall notify the consumer that: (1) the insurance has been purchased under this section; and (2) the premium for the insurance and interest on the premium have been added to the unpaid balance. (d) The creditor may determine the period and number of installments in which the consumer is to pay the premium and interest, including payment of the total amount on the date of the last installment, payment in equal increments added to each of the remaining installments, or payment in a lesser number of installments or in unequal increments. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.