1. (a) For insurance to be included as an itemized charge in a retail installment contract or a retail charge agreement:

   1. (1) the insurance must be written:

      1. (A) at lawful rates;
      2. (B) in accordance with the Insurance Code; and
      3. (C) by a company authorized to do business in this state; and
   2. (2) the disclosure requirements of this section must be satisfied.

2. (b) If the insurance is described by Section 345.201, 345.202, or 345.207, the retail installment contract or retail charge agreement, or a separate written statement or specimen copy of a certificate or policy of insurance that is given to the retail buyer, must identify the:

   1. (1) type of the coverage;
   2. (2) term of the coverage; and
   3. (3) amount of the premium for the coverage.
3. (c) If the insurance is described by Section 345.207, the retail installment contract must also clearly indicate that the coverage is optional.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.