(a) A creditor may finance as part of a credit transaction insurance:
(1) required in accordance with § 347.201; or
(2) requested by the consumer.
(b) The cost of the insurance required under § 347.201 may be included as a separate charge in the credit transaction.

Terms Used In Texas Finance Code 347.251

  • Consumer: means a person to whom credit is extended in a credit transaction. See Texas Finance Code 347.002
  • Credit transaction: means :
    (A) any sale, loan, or other transaction involving a retail purchase of a manufactured home and under which a person in a written agreement, including a credit sales contract or loan instrument, grants to another person a purchase money lien on the manufactured home to secure an extension of credit that is:
    (i) subject to a finance charge; or
    (ii) payable in more than four installments, not including a down payment; and
    (B) a lease or bailment described by § 347. See Texas Finance Code 347.002
  • Creditor: means a:
    (A) person who extends credit or arranges for the extension of credit in a credit transaction; or
    (B) retailer or broker, as defined by § 1201. See Texas Finance Code 347.002

(c) The premium of any insurance included in the credit transaction may be included in the unpaid balance of the credit transaction and paid as part of the total of payments regardless of whether the term of the insurance is less than the term of the credit transaction.
(d) A consumer and creditor may agree that the purchase of additional insurance under § 347.204 will be:
(1) in accordance with an insurance premium financing agreement made under the Insurance Code; and
(2) separate from the credit transaction.

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