Retail buyers and retail sellers may agree to add certain insurance or related charges to a retail installment contract, and some motor-vehicle-related service contracts and similar agreements are exempt from specified Insurance Code chapters.
Sec. 348.208. CHARGES FOR OTHER INSURANCE AND FORMS OF PROTECTION INCLUDED IN RETAIL INSTALLMENT CONTRACT. (a) A retail buyer and retail seller may agree in a retail installment contract to include a charge for insurance coverage that is: (1) for a risk of loss or liability reasonably related to: (A) the motor vehicle; (B) the use of the motor vehicle; or (C) goods or services that: (i) are related to the motor vehicle; and (ii) may ordinarily be insured with a motor vehicle; (2) written on policies or endorsement forms prescribed or approved by the commissioner of insurance; and (3) ordinarily available in policies or endorsements offered to the public. (b) A retail installment contract may include as a separate charge an amount for: (1) motor vehicle property damage or bodily injury liability insurance; (2) mechanical breakdown insurance; (3) participation in a motor vehicle theft protection plan; (4) insurance to reimburse the retail buyer for the amount computed by subtracting the proceeds of the buyer's basic collision policy on the motor vehicle from the amount owed on the vehicle if the vehicle has been rendered a total loss; (5) a warranty or service contract relating to the motor vehicle; (6) an identity recovery service contract; (7) a debt cancellation agreement, including a debt cancellation agreement under Chapter 354, if the agreement is included as a term of a retail installment contract under Section 348.124; or (8) a trade-in credit agreement. (b-1) In this section, "identity recovery service contract" means an agreement: (1) to provide identity recovery, as defined by Section 1304.003, Occupations Code; (2) that is entered into for a separately stated consideration and for a specified term; and (3) that is financed through a retail installment contract. (c) Notwithstanding any other law, service contracts, debt cancellation agreements, and trade-in credit agreements sold by a retail seller of a motor vehicle to a retail buyer are not subject to Chapter 101 or 226, Insurance Code. (d) Repealed by Acts 2011, 82nd Leg., R.S., Ch. 117, Sec. 26(3), eff. September 1, 2011. (e) Repealed by Acts 2011, 82nd Leg., R.S., Ch. 117, Sec. 26(3), eff. September 1, 2011. (f) Repealed by Acts 2011, 82nd Leg., R.S., Ch. 117, Sec. 26(3), eff. September 1, 2011. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 1107, Sec. 2, eff. June 18, 1999; Acts 1999, 76th Leg., ch. 1559, Sec. 2, eff. Aug. 30, 1999; Acts 2003, 78th Leg., ch. 1276, Sec. 10A.512, eff. Sept. 1, 2003. Amended by: Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 11.118, eff. September 1, 2005. Acts 2009, 81st Leg., R.S., Ch. 36 (S.B. 778), Sec. 1, eff. September 1, 2009. Acts 2009, 81st Leg., R.S., Ch. 149 (S.B. 1966), Sec. 4, eff. September 1, 2009. Acts 2009, 81st Leg., R.S., Ch. 238 (S.B. 1965), Sec. 10, eff. September 1, 2009. Acts 2011, 82nd Leg., R.S., Ch. 91 (S.B. 1303), Sec. 10.002, eff. September 1, 2011. Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 26(3), eff. September 1, 2011. Acts 2013, 83rd Leg., R.S., Ch. 1207 (S.B. 1388), Sec. 1, eff. September 1, 2013. Acts 2017, 85th Leg., R.S., Ch. 183 (S.B. 1052), Sec. 5, eff. September 1, 2017. Acts 2017, 85th Leg., R.S., Ch. 477 (H.B. 2339), Sec. 4, eff. September 1, 2017.