Section 3.5001 - Authority and ScopeThis subchapter is adopted pursuant to the authority provided in Insurance Code, Chapter 1153. This subchapter applies to all life insurance and all accident and health insurance sold in connection with loans and other credit transactions, the premium for which is charged to or paid for in whole or in part either directly or indirectly by the debtor, regardless of the nature, type, or plan of the credit insurance coverage or premium payment system, which shall include any such credit insurance which purports to be on a "cost free," "no cost," "give away," or other "no charge" basis insofar as a debtor is concerned, but shall not apply to:
(1) insurance issued or sold in connection with a loan or other credit transaction of more than 10 years' duration;(2) insurance issued or sold in connection with a credit transaction that is: (A) secured by a first mortgage or deed of trust; and(B) made to finance the purchase of commercial real property or the construction of or improvement to a building other than a single family dwelling on the real property if the purchase, construction, or improvement is secured by a lien on the real property, or to refinance a credit transaction made for those purposes; or(3) insurance issued or sold as an isolated transaction on the part of the insurer not related to an agreement or a plan for insuring debtors of the creditor.28 Tex. Admin. Code § 3.5001
The provisions of this §3.5001 adopted to be effective October 1, 1980, 5 TexReg 2772; amended to be effective June 30, 1992, 17 TexReg 4345; amended to be effective June 7, 2005, 30 TexReg 3210