Section 83.801 - DefinitionsWords and terms used in this subchapter that are defined in Texas Finance Code, Chapter 342, have the meanings as defined in Chapter 342. The following words and terms will have the following meanings unless the context clearly indicates otherwise.
(1) Personal property insurance--Coverage to insure tangible personal property offered as security for a loan made under Chapter 342.(2) Property insurance--Coverage to insure either an interest in real estate or tangible personal property offered as security for a loan made under Chapter 342.(3) Single-interest insurance--A form of property insurance that protects only the lender's interest in the property.(4) Credit insurance--Includes credit life insurance, credit accident and health insurance, and credit involuntary unemployment insurance.(5) Total personal property loss--The loss of all items of personal property listed as security for a loan and insured by a particular insurance policy.(6) Partial personal property loss--Any loss other than a total personal property loss.(7) Gap waiver agreement--An agreement that eliminates or reduces the deficiency when the proceeds from the borrower's insurance policy do not cover the unpaid net balance after the motor vehicle has suffered a total loss or constructive total loss. The unpaid net balance on the loan does not include: (A) delinquent payments (any outstanding payment that is more than 10 days past due);(D) unearned insurance premiums;(E) fees added after the date of the loan; or(F) any portion of the borrower's basic comprehensive and collision policy deductible that exceeds $1,000.(8) Constructive total loss--A loss where the cost to repair or replace the motor vehicle covered under the gap waiver agreement would exceed an amount equal to the actual cash value of the motor vehicle minus any salvage value. The actual cash value will be determined as of the date of loss. The actual cash value will be based on the "retail value" in the National Automobile Dealers Association (NADA) or an equivalent official used car guide. The licensee will consider the mileage, condition, and optional equipment of the motor vehicle when using the NADA or an equivalent official used car guide.7 Tex. Admin. Code § 83.801
The provisions of this §83.801 adopted to be effective November 9, 2006, 31 TexReg 9001; amended to be effective November 4, 2010, 35 TexReg 9698; amended to be effective July 10, 2014, 39 TexReg 5142