Tex. Ins. Code Section 651.154
Consolidation of Increase Attributable to Amendment of Rate Classification

(a)

If, in a premium finance agreement, a change in an insured’s policy that is caused by an amendment of the rate classification by endorsement or otherwise results in an increased principal balance and the amount under the previous contract has not been fully paid, the subsequent increase, at the insured’s option, may be consolidated with the previous contract if the agreement provides for consolidation.

(b)

A consolidation under this section may be accomplished by a memorandum of agreement between the agent and the insured if, before the first scheduled payment date of the amended transaction, the insurance premium finance company provides to the insured the following information in writing:

(1)

the amount of the premium increase;

(2)

the down payment on the increase;

(3)

the principal amount of the increase;

(4)

the total amount of any finance charge on the increase;

(5)

the total of the additional balance due;

(6)

the outstanding balance due under the original agreement;

(7)

the balance due under the consolidated agreement;

(8)

the annual percentage rate of any finance charge on the additional balance due;

(9)

the revised schedule of payments;

(10)

the amount or method of computing the amount of any default, deferment, or similar charge authorized by Chapter 342 (Consumer Loans), Finance Code, that is payable in the event of late payment; and

(11)

the method of computing any unearned portion of the finance charge in the event of prepayment of the obligation.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.

Source: Section 651.154 — Consolidation of Increase Attributable to Amendment of Rate Classification, https://statutes.­capitol.­texas.­gov/Docs/IN/htm/IN.­651.­htm#651.­154 (accessed Apr. 29, 2024).

651.001
Definitions 651.002
Certain Conduct Not Engaging in Business as Insurance Premium Finance Company 651.003
Rules 651.004
Employment of Examiners and Investigators 651.005
Deposit and Use of Fees 651.006
Assessments 651.007
Applicability of Consumer Credit Protection Act and Regulation Z 651.008
Authority of Certain Property and Casualty Agents to Charge Interest to Certain Persons 651.051
License Required 651.052
License Fee 651.053
Entitlement of Banks and Savings and Loan Associations to License 651.054
Application for License 651.055
Refusal to Issue License 651.056
Notice of Action on Application 651.057
Issuance of License 651.058
Reciprocal License 651.059
Issuance of Multiple Licenses 651.060
Single Business Location Authorized by License 651.061
Appearance of License 651.062
Transfer or Assignment of License Prohibited 651.063
Term of License 651.064
Procedure for License Renewal 651.065
Staggered Renewal System 651.101
Books, Accounts, and Records 651.102
Annual Report 651.103
Business Name 651.104
Business Location 651.105
Relocation of Place of Business 651.106
Business Premises 651.107
Engaging in Business by Mail or Outside the Community 651.108
Certain Charges Prohibited 651.109
Limitations on Rates and Charges 651.110
Limitations on Certain Inducements or Sharing of Profits and Fees 651.111
Deceptive Advertising Prohibited 651.151
Required Form and Contents of Premium Finance Agreement 651.152
Other Required Contents 651.153
Form of Disclosures 651.154
Consolidation of Increase Attributable to Amendment of Rate Classification 651.155
Responsibilities of Insurance Agent 651.156
Taking of Incomplete Premium Finance Agreement Prohibited 651.157
Perfection of Premium Finance Agreement as Secured Transaction: Filing Not Required 651.158
Prepayment and Refund 651.159
Default Charge 651.160
Power of Attorney 651.161
Cancellation of Insurance Contract 651.162
Return of Unearned Premiums and Commissions 651.163
Assignment of Premium Finance Agreement 651.164
Restrictions on Premium Finance Agreements 651.165
Required Notice of Certain Premium Finance Agreements 651.166
Taking, Receiving, or Charging Unauthorized Amount 651.167
Effect of License Revocation, Suspension, or Surrender on Premium Finance Agreement 651.201
Examinations and Investigations of License Holders 651.202
Confidentiality of Reports and Related Material 651.203
Hearings and Investigations 651.204
Revocation or Suspension of License 651.205
Issuance of Revocation or Suspension Order 651.206
Surrender of License 651.207
License Reinstatement 651.208
Offense 651.209
Sanctions
Green check means up to date. Up to date

Accessed:
Apr. 29, 2024

§ 651.154’s source at texas​.gov