(a) A premium finance license is required if a person:
  (1) makes loans by entering into premium finance agreements with insureds and prospective insureds;
  (2) acquires premium finance agreements from insurance agents, brokers, or other premium finance companies; or
  (3) holds premium finance agreements made and delivered by insureds payable to the person or his order.
(b) A premium finance license is not required if a person is a properly licensed local recording agent and finances premiums in accordance with the Insurance Code, Article 24.20.

Source Note: The provisions of this §25.21 adopted to be effective May 17, 1995, 20 TexReg 3337.