By: Harris, C. S.B. No. 417 73R2007 PB-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to disclosures required in the sale of certain single 1-3 interest insurance policies. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter E, Chapter 21, Insurance Code, is 1-6 amended by adding Article 21.72 to read as follows: 1-7 Art. 21.72. DISCLOSURE REQUIREMENTS FOR CERTAIN SINGLE 1-8 INTEREST INSURANCE POLICIES. (a) In this article: 1-9 (1) "County mutual insurance company" means an entity 1-10 subject to Chapter 17 of this code. 1-11 (2) "Creditor" means a person that provides financing 1-12 for personal property involved in a consumer credit transaction. 1-13 (3) "Insurer" includes a county mutual insurance 1-14 company. 1-15 (4) "Person" means an individual, corporation, 1-16 association, partnership, or other private legal entity. 1-17 (5) "Single interest insurance policy" means a policy 1-18 of insurance required by a creditor in a consumer credit 1-19 transaction that protects the interests of the creditor. The term 1-20 includes a policy of credit life insurance or credit accident and 1-21 health insurance regulated under Article 3.53 of this code. 1-22 (b) Each insurer that offers a single interest insurance 1-23 policy to a potential borrower in a consumer credit transaction 1-24 shall provide the potential borrower with a written statement that: 2-1 (1) describes what single interest insurance is and 2-2 whom it is designed to protect; 2-3 (2) the total cost to the borrower of the policy; and 2-4 (3) if the insurer is a county mutual insurance 2-5 company, the fact that equivalent coverage may be purchased from 2-6 sources other than county mutual insurance companies. 2-7 SECTION 2. This Act takes effect September 1, 1993, and 2-8 applies only to a single interest insurance policy that is offered 2-9 for delivery on or after January 1, 1994. A policy that is offered 2-10 for delivery before January 1, 1994, is governed by the law as it 2-11 existed immediately before the effective date of this Act, and that 2-12 law is continued in effect for that purpose. 2-13 SECTION 3. The importance of this legislation and the 2-14 crowded condition of the calendars in both houses create an 2-15 emergency and an imperative public necessity that the 2-16 constitutional rule requiring bills to be read on three several 2-17 days in each house be suspended, and this rule is hereby suspended.