Texas Finance Code 342.402 – Credit Life Insurance, Credit Health and Accident Insurance, or Involuntary Unemployment Insurance
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(a) On a loan made under this chapter that is subject to Subchapter E with a cash advance of $100 or more, a lender may:
(1) offer a borrower credit life insurance and credit health and accident insurance as additional protection for the loan; and
(2) offer involuntary unemployment insurance to the borrower at the time the loan is made.
(b) A lender may not require that the borrower accept or provide the insurance described by Subsection (a).
Terms Used In Texas Finance Code 342.402
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
(c) On a secondary mortgage loan made under this chapter, a lender may require that a borrower provide credit life insurance and credit accident and health insurance as additional protection for the loan.