Section 354.002 - Limitation on Certain Debt Cancellation Agreements(a) This chapter applies only to a debt cancellation agreement that includes insurance coverage as part of the retail buyer's responsibility to the holder.(b) The amount charged for a debt cancellation agreement made in connection with a contract may not exceed five percent of the amount financed pursuant to the contract. Section 348.124(c) does not apply to a debt cancellation agreement regulated under this chapter.(c) The debt cancellation agreement becomes a part of or a separate addendum to the contract and remains a term of the contract on the assignment, sale, or transfer by the holder.(d) A debt cancellation agreement to which this chapter applies is not insurance.Renumbered from Tex. Fin. Code § 348.601 by Acts 2017, Texas Acts of the 85th Leg. - Regular Session, ch. 183,Sec. 6, eff. 9/1/2017.Amended by Acts 2013, 83rd Leg. - Regular Session, ch. 354,Sec. 1, eff. 9/1/2013.Added by Acts 2011, 82nd Leg., R.S., Ch. 1034, Sec. 2, eff. 9/1/2011.