A credit union may make insurance programs available to its members, including insurance programs at the individual member's own expense, if the following conditions are complied with:

1. (1) The purchase of any type of insurance coverage by a member is voluntary, except as provided in paragraph (2) of this section, and a copy of the written election to purchase the insurance is on file at the credit union.
2. (2) Subject to reasonable requirements, if the insurance is a condition of a loan, the member who is borrowing may purchase or provide the insurance from a carrier of the member's choice, or the member who is borrowing may assign any existing insurance coverage.
3. (3) An officer, director, employee, or committee member of a credit union may not accept anything of value from an insurance agent, insurance company, or other insurance provider offered to corruptly induce the credit union to sell or offer to sell insurance or other related products or services to the members of the credit union.
4. (4) If a credit union replaces an existing loan or renews a loan and sells the member new credit life or disability insurance, the credit union shall cancel the prior insurance and provide the member with a refund or credit of the unearned premium or identifiable charge before selling the new insurance to the member.

Source Note:The provisions of this §91.402 adopted to be effective March 14, 2004, 29 TexReg 2306.