(a) An insurance premium finance company may not take or receive from an insured a greater rate or charge than is authorized by Chapter 342, Finance Code.
(b) For purposes of this section, a charge begins on the earlier of:
(1) the date from which the insurer requires payment of the premium and payment was made to the insurer for the financed policy; or
(2) the effective date of the policy.

Terms Used In Texas Insurance Code 651.109

  • Finance charge: The total cost of credit a customer must pay on a consumer loan, including interest. The Truth in Lending Act requires disclosure of the finance charge. Source: OCC

(c) The finance charge is computed on the balance of the premiums due after subtracting any down payment made by the insured in accordance with the premium finance agreement.

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