Section 3.5103 - Policy ProvisionsEach individual policy or group certificate of credit life insurance or credit accident and health insurance delivered or issued for delivery in this state must, in addition to the other requirements of law, set forth:
(1) the name and home office mailing address of the insurer, and on group certificates of insurance, an identification of the master policy;(2) the name and age or birth date of the insured debtor (or debtors, if joint life);(3) the full amount of premium or the total identifiable insurance charge, if any, to the debtor, stated separately for credit life insurance and for credit accident and health insurance; however, if the indebtedness is an open-end transaction, there must be set forth, separately for credit life and credit accident and health insurance, the rate of insurance charge or payment per unit of coverage and how each charge is derived;(4) the amount of insurance coverage;(5) the effective date of insurance, and the termination date of insurance. The termination date may not extend more than 15 days beyond the scheduled maturity date of the indebtedness except when extended without additional cost to the debtor. If the indebtedness is an open-end transaction, in lieu of the termination date, the conditions of termination must be set forth;(6) a description of the coverage;(7) any and all exceptions, limitations, and restrictions to the coverage;(8) a statement that the benefits, to the extent necessary to extinguish the unpaid amount of the indebtedness, will be paid to the creditor as first beneficiary, and will be applied by the creditor to reduce or extinguish such indebtedness; and a statement that wherever the insurance benefits may exceed the amount necessary to extinguish the indebtedness, any such excess must be paid by separate check or draft of the insurer to the insured debtor, if then living; otherwise, to a second beneficiary named by the debtor, or a second insured debtor or, in the absence of such designation, to the surviving spouse or to the debtor's estate;(9) a statement indicating that upon discharge of the indebtedness, the insurance will be terminated, but without prejudice to any claim originating prior to such termination, and that in all cases of termination prior to scheduled maturity, a refund of any unearned amount of premium paid by or charged to the debtor for insurance will be made in accordance with the appropriate formula set forth in § 3.5901 of this title (relating to Refund of Unearned Premiums) and § 3.5906 of this title (relating to Treatment of Partial Months). Such refund must be paid or credited to the account of the debtor, or paid to the second beneficiary, if the debtor is not living. No such refund is required if the total amount thereof is less than $3.00. (For insurance coverage subject to Finance Code Chapters 341, 342, and 345 - 348, a refund must be made, except that no cash refund will be required if the amount thereof is less than $1.00.)28 Tex. Admin. Code § 3.5103
The provisions of this §3.5103 adopted to be effective October 1, 1980, 5 TexReg 2772; amended to be effective March 19, 1984, 9 TexReg 1357; amended to be effective February 4, 1985, 10 TexReg 250; amended to be effective June 30, 1992, 17 TexReg 4345; Amended by Texas Register, Volume 47, Number 18, May 6, 2022, TexReg 2769, eff. 5/11/2022