A lender, including an officer, agent, or employee of the lender, who accepts insurance under this subchapter as protection for a loan:

1. (1) may deduct the premium or identifiable charge for the insurance from the proceeds of the loan; and
2. (2) shall pay the deducted amounts to the insurance company writing the insurance.

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.19(a), eff. Sept. 1, 1999.