Section 348.207 - Buyer's Failure to Provide Evidence of Insurance(a) If a retail buyer fails to present to the holder reasonable evidence that the buyer has obtained or maintained a coverage required by the retail installment contract, the holder may:(1) obtain substitute insurance coverage that is substantially equal to or more limited than the coverage required; and(2) add the amount of the premium advanced for the substitute insurance to the unpaid balance of the contract.(b) Substitute insurance coverage under Subsection (a)(1):(1) may at the holder's option be limited to coverage only of the interest of the holder or the interest of the holder and the buyer; and(2) must be written at lawful rates in accordance with the Insurance Code by a company authorized to do business in this state.(c) If substitute insurance is obtained by the holder under Subsection (a), the amendment adding the premium or rescheduling the contract is not required to be signed by the retail buyer. The holder shall deliver to the buyer or send to the buyer's most recent address shown on the records of the holder specific written notice that the holder has obtained substitute insurance. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. 9/1/1997.