73R6293 E
By Jones of Lubbock H.B. No. 1598
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to types of credit insurance in loan contracts.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section (1), Article 3.18, Title 79, Revised
1-5 Statutes (Article 5069-3.18, Vernon's Texas Civil Statutes), is
1-6 amended to read as follows:
1-7 (1) On any loan having a cash advance of One Hundred Dollars
1-8 or more, made under the authority of this Chapter, a lender may
1-9 request, offer, but not require, <or require> a borrower to provide
1-10 credit life insurance and credit health and accident insurance as
1-11 additional protection for such a loan. In addition, the lender
1-12 may offer, but not require, involuntary unemployment insurance to
1-13 the borrower at the time of making the loan and may include the
1-14 premium for such insurance in the loan contract. Policies of
1-15 credit life insurance or credit health and accident insurance, or
1-16 involuntary unemployment insurance, may not be in force with
1-17 respect to any one obligor on any one loan contract at any one time
1-18 that in combination exceed:
1-19 (i) as to credit life insurance, the total amount
1-20 repayable under the contract of indebtedness and, where an
1-21 indebtedness is repayable in substantial equal installments, the
1-22 amount of insurance shall at no time exceed the scheduled or actual
1-23 amount of unpaid indebtedness, whichever is greater, or
1-24 (ii) as to credit accident and health insurance, the
2-1 total amount repayable under the contract of indebtedness and the
2-2 amount of each periodic indemnity payment shall not exceed the
2-3 scheduled periodic installment payment on the indebtedness, or
2-4 (iii) as to involuntary unemployment insurance, the
2-5 total amount repayable under the contract of indebtedness, and the
2-6 amount of each periodic indemnity payment shall not exceed the
2-7 scheduled periodic installment payment on the indebtedness.
2-8 SECTION 2. Section (1), Article 4.02, Title 79, Revised
2-9 Statutes (Article 5069-4.02, Vernon's Texas Civil Statutes), is
2-10 amended to read as follows:
2-11 (1) On any loan made under the authority of this Chapter, a
2-12 lender may request, offer, but not require, <or require> a borrower
2-13 to provide credit life insurance and credit health and accident
2-14 insurance as additional protection for such a loan. In addition,
2-15 the lender may offer, but not require, involuntary unemployment
2-16 insurance to the borrower at the time of making the loan and may
2-17 include the premium for such insurance in the loan contract.
2-18 Policies of credit life insurance or credit health and accident
2-19 insurance, or involuntary unemployment insurance, may not be in
2-20 force with respect to any one obligor on any one loan contract at
2-21 any one time that in combination exceed:
2-22 (i) as to credit life insurance, the total amount
2-23 repayable under the contract of indebtedness and, where an
2-24 indebtedness is repayable in substantial equal installments, the
2-25 amount of insurance shall at no time exceed the scheduled or actual
2-26 amount of unpaid indebtedness, whichever is greater, or
2-27 (ii) as to credit accident and health insurance, the
3-1 total amount repayable under the contract of indebtedness and the
3-2 amount of each periodic indemnity payment shall not exceed the
3-3 scheduled periodic installment payment on the indebtedness, or
3-4 (iii) as to involuntary unemployment insurance, the
3-5 total amount repayable under the contract of indebtedness, and the
3-6 amount of each periodic indemnity payment shall not exceed the
3-7 scheduled periodic installment payment on the indebtedness.
3-8 SECTION 3. The importance of this legislation and the
3-9 crowded condition of the calendars in both houses create an
3-10 emergency and an imperative public necessity that the
3-11 constitutional rule requiring bills to be read on three several
3-12 days in each house be suspended, and this rule is hereby suspended.