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Senate Bill 1966 |
Senate Author: Harris |
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Effective: 9-1-09 |
House Sponsor: Hopson |
Senate Bill 1966 amends the Finance Code to authorize a retail seller, in connection with a motor vehicle retail installment sales transaction, to offer to the retail buyer a debt cancellation agreement under which the retail seller agrees to cancel all or part of the retail buyer's obligation to repay an extension of credit from the retail seller upon the total loss or theft of the motor vehicle. The bill prohibits the retail seller from requiring the purchase of such an agreement as a condition for entering into a retail installment transaction for the purchase of a motor vehicle and requires the retail seller to provide to the retail buyer, a separate notice to that effect. The bill also establishes that a debt cancellation agreement is not considered an insurance product and is not subject to regulation under the Insurance Code.