Sec. 345.201.  PROPERTY INSURANCE.  (a)  A holder may request or require a retail buyer to insure the property purchased or improved under a retail installment transaction, including the purchase of title insurance on real property that is involved in the retail installment contract or retail charge agreement and that is subject to a security interest of the holder, including a lien.
(b)  If the property is a boat that may be enrolled or licensed as a yacht with the United States Coast Guard and subject to the maritime laws of the United States, a holder may also require a retail buyer to provide in connection with the boat:
(1)  protection and indemnity insurance;
(2)  longshoremen's and harbor worker's compensation insurance;  and
(3)  medical payments insurance.
(c)  The insurance and the premiums or charges for the insurance must bear a reasonable relationship to:
(1)  the amount, term, and conditions of the retail installment contract or retail charge agreement;
(2)  the existing hazards or risk of loss, damage, or destruction;  or
(3)  the potential liability.
(d)  The insurance may not:
(1)  cover unusual or exceptional risks;  or
(2)  provide coverage not ordinarily included in policies issued to the public.
(e)  The holder may include the cost of insurance provided under this section as a separate charge in the contract or agreement.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.