Texas § IN.651.151 - REQUIRED FORM AND CONTENTS OF PREMIUM FINANCE AGREEMENT

§ IN.651.151. REQUIRED FORM AND CONTENTS OF PREMIUM FINANCE AGREEMENT

REQUIRED FORM AND CONTENTS OF PREMIUM FINANCE AGREEMENT. (a) A premium finance agreement must be in writing on a form approved by the commissioner. (b) A premium finance agreement must be dated and signed by the insured. An agreement may be signed on behalf of the insured by the insured's agent if: (1) the agreement contains policies for other than personal, family, or household purposes; and (2) the premiums for the policies exceed $1,000. (c) A premium finance agreement must contain: (1) the name and business address of the insurance agent or broker negotiating the related insurance contract; (2) the name and residence or business address of the insured as specified by the insured; (3) the name and business location of the insurance premium finance company to which payments are to be made; (4) a description of each insurance contract involved; (5) the amount of the premium for each insurance contract; (6) the total amount of the premiums for all insurance contracts; (7) the amount of any down payment; (8) the principal balance, which is the difference between the amounts under Subdivisions (6) and (7); (9) the total amount of the finance charge, which must describe each amount included and use the term "finance charge"; and (10) the balance payable by the insured, which is the sum of the amounts under Subdivisions (8) and (9). Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.