Texas Business & Commerce Code - Section 35.721. Loss Damage Waiver
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§ 35.721. LOSS DAMAGE WAIVER. (a) In addition to other
charges permitted by this subchapter, a consumer may contract for a
loss damage waiver. A loss damage waiver is not insurance.
(b) A merchant may not sell a loss damage waiver unless the
consumer agrees to the waiver in writing. A merchant may not impose
or require the purchase of a loss damage waiver as a mandatory
charge.
(c) A loss damage waiver may exclude loss or damage to the
merchandise that is caused by an unexplained disappearance or
abandonment of the merchandise, or any other damage that is
intentionally caused by the consumer or that results from the
consumer's wilful or wanton misconduct.
(d) A loss damage waiver agreement must include a statement
of the total charge for the loss damage waiver.
(e) A merchant may charge a periodic fee for a loss damage
waiver that may not exceed 10 percent of the periodic rental
payment.
(f) A contract that offers a loss damage waiver must include
the following notice:
"This contract offers an optional loss damage waiver for an
additional charge to cover your responsibility for loss of or
damage to the merchandise. You do not have to purchase this
coverage. Before deciding whether or not to purchase this loss
damage waiver, you may consider whether your homeowners' or
casualty insurance policy affords you coverage for loss of or
damage to rental merchandise and the amount of the deductible you
would pay under your policy."
(g) A merchant may not sell a loss damage waiver unless the
form of the contract containing the waiver has been approved by the
Texas Department of Licensing and Regulation.
(h) The Texas Commission of Licensing and Regulation shall
by rule:
(1) provide the method for annual submission of all
contracts, including amendments to a contract, that contain a loss
damage waiver, for review by the Texas Department of Licensing and
Regulation; and
(2) set a reasonable fee to be paid by the merchant for
the review of contract forms under Subdivision (1) and for the
administration of this subchapter by the Texas Department of
Licensing and Regulation.
Added by Acts 2003, 78th Leg., ch. 816, § 24.003, eff. Sept. 1,
2003.
Section: 35.59 35.591 35.60 35.61 35.62 35.71 35.72 35.721 35.722 35.73 35.74 35.81 35.82 35.83 35.84
Last modified: August 10, 2007
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