SECTION 3.5105. Application Provisions

(a) If said individual policy or group certificate of insurance is not delivered to the debtor at the time the indebtedness is incurred, a copy of the application for such individual policy or a notice of such proposed group insurance coverage shall be delivered to the debtor at the time such indebtedness is incurred. However, when insurance is voluntarily applied for more than 30 days later by the debtor, and such application for insurance is a transaction separate and apart from the credit transaction and is not a requirement of the creditor, and in the absence of a prior identifiable insurance charge to the debtor in the loan involved, a copy of such application or such notice conforming to these sections shall be delivered to the debtor when executed.

(b) Every application, enrollment form, or notice of proposed insurance shall provide for the signature of the debtor and shall set forth:

(1) the name and home office mailing address of the insurer, and on notices of proposed group insurance, debtor's applications for group insurance or enrollment forms for group insurance, an identification of the master policy;

(2) the name and age of the debtor or debtors;

(3) the full amount of premium or the total identifiable insurance charge, if any, to the debtor, separately for credit life and for credit accident and health insurance;

(4) the amount of coverage;

(5) the effective date of insurance, if accepted by the insurer, and the termination date of insurance which shall not extend more than 15 days beyond the scheduled maturity date of the indebtedness except when extended without additional cost to the debtor;

(6) a brief description of the coverage applied for; and

(7) a statement that upon acceptance of the insurance by the insurer and not later than 45 days after the date upon which the indebtedness is incurred (or, if the indebtedness is an open-end transaction, not later than 30 days from the date of application for coverage) the insurer shall cause the individual policy or the group certificate of insurance to be delivered to the debtor, and that if the insurance is not accepted by the insurer or by a substituted insurer as authorized by Insurance Code §1153.158, then any insurance charge made for such insurance shall be fully refunded and the creditor shall immediately give written notice to such debtor and shall promptly make an appropriate credit to the debtor's account in accordance with Insurance Code §1153.203.

(c) The copy of such application or notice of proposed insurance shall refer exclusively to insurance coverage and shall be separate and apart from the loan, sale, or other credit statement of account, instrument, or agreement, unless the information above required appears in type of at least equal size and prominence as the other provisions of said statement of account, instrument, or agreement.

(d) The application, enrollment form, or notice of proposed insurance shall not contain language which requires the debtor to attest or acknowledge that he/she is eligible or ineligible for the insurance coverage.

(e) If eligibility conditions of employment and/or good health are required, the debtor's application shall contain a space for the debtor's and/or joint debtor's signatures whereby they can attest to those specific conditions of eligibility.

Source Note: The provisions of this §3.5105 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