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.