1-1 By: Jones of Lubbock H.B. No. 1598
1-2 (Senate Sponsor - Harris of Dallas)
1-3 (In the Senate - Received from the House April 26, 1993;
1-4 April 27, 1993, read first time and referred to Committee on
1-5 Economic Development; May 13, 1993, reported favorably by the
1-6 following vote: Yeas 10, Nays 0; May 13, 1993, sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Parker x
1-10 Lucio x
1-11 Ellis x
1-12 Haley x
1-13 Harris of Dallas x
1-14 Harris of Tarrant x
1-15 Leedom x
1-16 Madla x
1-17 Rosson x
1-18 Shapiro x
1-19 Wentworth x
1-20 A BILL TO BE ENTITLED
1-21 AN ACT
1-22 relating to types of credit insurance in loan contracts.
1-23 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-24 SECTION 1. Section (1), Article 3.18, Title 79, Revised
1-25 Statutes (Article 5069-3.18, Vernon's Texas Civil Statutes), is
1-26 amended to read as follows:
1-27 (1) On any loan having a cash advance of One Hundred Dollars
1-28 or more, made under the authority of this Chapter, a lender may
1-29 request, offer, but not require, <or require> a borrower to provide
1-30 credit life insurance and credit health and accident insurance as
1-31 additional protection for such a loan. In addition, the lender
1-32 may offer, but not require, involuntary unemployment insurance to
1-33 the borrower at the time of making the loan and may include the
1-34 premium for such insurance in the loan contract. Policies of
1-35 credit life insurance or credit health and accident insurance, or
1-36 involuntary unemployment insurance, may not be in force with
1-37 respect to any one obligor on any one loan contract at any one time
1-38 that in combination exceed:
1-39 (i) as to credit life insurance, the total amount
1-40 repayable under the contract of indebtedness and, where an
1-41 indebtedness is repayable in substantial equal installments, the
1-42 amount of insurance shall at no time exceed the scheduled or actual
1-43 amount of unpaid indebtedness, whichever is greater, or
1-44 (ii) as to credit accident and health insurance, the
1-45 total amount repayable under the contract of indebtedness and the
1-46 amount of each periodic indemnity payment shall not exceed the
1-47 scheduled periodic installment payment on the indebtedness, or
1-48 (iii) as to involuntary unemployment insurance, the
1-49 total amount repayable under the contract of indebtedness, and the
1-50 amount of each periodic indemnity payment shall not exceed the
1-51 scheduled periodic installment payment on the indebtedness.
1-52 SECTION 2. Section (1), Article 4.02, Title 79, Revised
1-53 Statutes (Article 5069-4.02, Vernon's Texas Civil Statutes), is
1-54 amended to read as follows:
1-55 (1) On any loan made under the authority of this Chapter, a
1-56 lender may request, offer, but not require, <or require> a borrower
1-57 to provide credit life insurance and credit health and accident
1-58 insurance as additional protection for such a loan. In addition,
1-59 the lender may offer, but not require, involuntary unemployment
1-60 insurance to the borrower at the time of making the loan and may
1-61 include the premium for such insurance in the loan contract.
1-62 Policies of credit life insurance or credit health and accident
1-63 insurance, or involuntary unemployment insurance, may not be in
1-64 force with respect to any one obligor on any one loan contract at
1-65 any one time that in combination exceed:
1-66 (i) as to credit life insurance, the total amount
1-67 repayable under the contract of indebtedness and, where an
1-68 indebtedness is repayable in substantial equal installments, the
2-1 amount of insurance shall at no time exceed the scheduled or actual
2-2 amount of unpaid indebtedness, whichever is greater, or
2-3 (ii) as to credit accident and health insurance, the
2-4 total amount repayable under the contract of indebtedness and the
2-5 amount of each periodic indemnity payment shall not exceed the
2-6 scheduled periodic installment payment on the indebtedness, or
2-7 (iii) as to involuntary unemployment insurance, the
2-8 total amount repayable under the contract of indebtedness, and the
2-9 amount of each periodic indemnity payment shall not exceed the
2-10 scheduled periodic installment payment on the indebtedness.
2-11 SECTION 3. The importance of this legislation and the
2-12 crowded condition of the calendars in both houses create an
2-13 emergency and an imperative public necessity that the
2-14 constitutional rule requiring bills to be read on three several
2-15 days in each house be suspended, and this rule is hereby suspended.
2-16 * * * * *
2-17 Austin,
2-18 Texas
2-19 May 13, 1993
2-20 Hon. Bob Bullock
2-21 President of the Senate
2-22 Sir:
2-23 We, your Committee on Economic Development to which was referred
2-24 H.B. No. 1598, have had the same under consideration, and I am
2-25 instructed to report it back to the Senate with the recommendation
2-26 that it do pass and be printed.
2-27 Parker,
2-28 Chairman
2-29 * * * * *
2-30 WITNESSES
2-31 FOR AGAINST ON
2-32 ___________________________________________________________________
2-33 Name: Bob Duke x
2-34 Representing: TX Financial Services Assn.
2-35 City: Austin
2-36 -------------------------------------------------------------------
2-37 Name: James W. Bantham x
2-38 Representing: Associates Corp. of N. America
2-39 City: Irving
2-40 -------------------------------------------------------------------
2-41 Name: Karen Neeley x
2-42 Representing: Ind. Bankers Assn. of TX
2-43 City: Austin
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