Texas § IN.4055.102 - DEFINITION OF CREDIT PROPERTY INSURANCE

§ IN.4055.102. DEFINITION OF CREDIT PROPERTY INSURANCE

DEFINITION OF CREDIT PROPERTY INSURANCE. (a) In this subchapter, "credit property insurance" means insurance that covers personal property: (1) used as security for a personal or consumer loan; or (2) under an installment sales agreement or through a consumer credit transaction that is purchased in connection with or in relation to the personal or consumer loan, installment sale, or consumer credit transaction. (b) "Credit property insurance" does not include insurance that: (1) provides theft, collision, liability, property damage, or comprehensive insurance coverage on an automobile, motorized aircraft, motorcycle, truck, truck-tractor, traction engine, or any other self-propelled vehicle or craft that is designed primarily for operation in the air, or on highways, roadways, waterways, or the sea, and the operating equipment of the self-propelled vehicle or craft; or (2) is necessary because of liability imposed by law for damages arising out of the ownership, operation, maintenance, or use of a vehicle or craft described by Subdivision (1), other than single interest coverage on any vehicle or craft described by Subdivision (1) that insures the interest of the creditor in the same manner as security for a loan. Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.