(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.

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