| (a) Before an insurance premium finance company may finance
a policy insured through the Texas Automobile Insurance Plan Association (TAIPA),
it must require disclosure to the insured or prospective insured the payment
plan available through TAIPA. A comparison between the terms of financing
the policy with an insurance premium finance company and the use of the payment
plan available through TAIPA must be made.
(b) This disclosure shall be made using the Premium Finance
Comparison Disclosure Form (Disclosure Form), which the Department adopts
and incorporates by reference. The Disclosure Form shall be provided to the
consumer in both English and Spanish. The effective date of the Disclosure
Form is October 1, 2001. This form is published by the Department and may
be obtained from the Premium Finance Licensing Unit, Mail Code 107-5A, Texas
Department of Insurance, 333 Guadalupe, P.O. Box 149104, Austin, Texas 78714-9104.
Reproduction of this form is allowed.
(c) The insurance premium finance company shall maintain copies
of the Disclosure Forms as evidence to an examiner that disclosure of the
TAIPA payment plan was made to the insured.
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| Source Note: The provisions of this §25.9 adopted to be effective May 17, 1995, 20 TexReg 3337; amended to be effective October 15, 1995, 20 TexReg 7993; amended to be effective October 2, 2001, 26 TexReg 7564 |
