| (a) For a personal automobile policy that includes
comprehensive or collision physical damage coverage for an automobile
that is subject to a purchase money lien, insurers must give written
notice to the lienholder, if known, at least 10 days before the insurer:
(1) cancels coverage; or
(2) nonrenews the policy.
(b) Cancellation or nonrenewal of a policy may not
take effect earlier than the 10th day after the insurer sends written
notice of the cancellation or nonrenewal to the lienholder.
(c) Notice may be given by mail, hand delivery, or
electronically if the notice complies with Chapter 35 of the Texas
Insurance Code.
(d) A lienholder may opt out of the notice requirement
or agree to different notice requirements with an insurer.
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