(a) Personal property insurance, other than insurance covering a motor vehicle, must not be written in an amount in excess of the total related note unless prior to writing the insurance, the complete policy of insurance, the proposed rates, and the proposed conditions have been approved by the commissioner.
(b) Property insurance must not be written for more than the value of the item or items insured.
(c) Motor vehicle insurance written in accordance with applicable law, the regulations promulgated by the Texas Department of Insurance, and the rating procedures established by the Texas Department of Insurance, is presumed to satisfy the requirements set forth in Texas Finance Code, Chapter 342, Subchapter I.
(d) Each licensee must substantiate that the amount of personal property insurance, other than coverage on a motor vehicle, is reasonable in relation to the value of the item or items insured. The value must be established in writing by the borrower and the licensee on each insured item and each value must be reasonable in relation to the actual replacement cost of the item. A valuation that has been established on goods to be insured may not be increased unless it can be shown there has been a substantial change in the nature of the items insured or the value of these items.

Source Note: The provisions of this §83.803 adopted to be effective November 9, 2006, 31 TexReg 9001; amended to be effective November 4, 2010, 35 TexReg 9698