Houston Independent Automobile Dealers Association January 2016 Issue: How Compliant Are You? | Page 6

on the cover

(Editor’s note:
The following questions
were taken from
information that was
published in a Legal
Corner or Regulation
Matters column in a
2015 issue of Texas
Dealer magazine.)

18

1. A liability insurance company, when settling
a case for damages to collateral caused by
their insured:
a. Must investigate lien status only if the
damage exceeds $2,000.
b. Must include the lien holder’s name
on a settlement check issued to cover
damage to the collateral.
c . Must make all checks for property
damage payable to both the owner
and lien holder if the amount exceeds
$2,500.

d. Must pay the owner and lien holder
the amount needed to repair the vehicle less the deductible.

2. True or False: As long as a dealer does not
charge a documentary fee of more than
the $125 “safe harbor” amount, the dealer
does not need to notify the OCCC.

3. True or False:
A dealer doesn’t have to transfer title to a
buyer who defaults on the first payment.
T e x a s

D e a l e r

December 2015