By: Harris of Dallas S.B. No. 1081
A BILL TO BE ENTITLED
AN ACT
1-1 relating to types of credit insurance in loan contracts.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 1, Article 5069-3.18 Vernon's Texas Civil
1-4 Statutes is amended to read as follows:
1-5 Article 5069-3.18. Insurance. (1) On any loan having a
1-6 cash advance of One Hundred Dollars or more, made under the
1-7 authority of this Chapter, a lender may request, offer, but not
1-8 <or> require a borrower to provide credit life insurance and credit
1-9 health and accident insurance as additional protection for such a
1-10 loan. In addition, the lender may offer, but not require,
1-11 involuntary unemployment insurance to the borrower at the time of
1-12 making the loan and may include the premium for such insurance in
1-13 the loan contract. Policies of credit life insurance, <or> credit
1-14 health and accident insurance, or involuntary unemployment
1-15 insurance may not be in force with respect to any one obligor on
1-16 any one loan contract at any one time that in combination exceed:
1-17 (i) as to credit life insurance, the total
1-18 amount repayable under the contract of indebtedness and, where an
1-19 indebtedness is repayable in substantial equal installments, the
1-20 amount of insurance shall at no time exceed the scheduled or actual
1-21 amount of unpaid indebtedness, whichever is greater; <, or>
1-22 (ii) as to credit accident and health
1-23 insurance, the total amount repayable under the contract of
2-1 indebtedness and the amount of each periodic indemnity payment
2-2 shall not exceed the scheduled periodic installment payment on the
2-3 indebtedness; or <.>
2-4 (iii) as to involuntary unemployment
2-5 insurance, the total amount repayable under the contract of
2-6 indebtedness, and the amount of each periodic indemnity payment
2-7 shall not exceed the scheduled periodic installment payment on the
2-8 indebtedness.
2-9 SECTION 2. Section 1, Article 5069-4.02 Vernon's Texas Civil
2-10 Statutes is amended to read as follows:
2-11 Article 5069-4.02. Insurance. (1) On any loan made under
2-12 the authority of this Chapter, a lender may request, offer, but not
2-13 <or> require a borrower to provide credit life insurance and
2-14 credit health and accident insurance as additional protection for
2-15 such a loan. In addition, the lender may offer, but not require
2-16 involuntary unemployment insurance to the borrower at the time of
2-17 making the loan and may include the premium for such insurance in
2-18 the loan contract. Policies of credit life insurance, <or> credit
2-19 health and accident insurance, or involuntary unemployment
2-20 insurance may not be in force with respect to any one obligor on
2-21 any one loan contract at any one time that in combination exceed:
2-22 (i) as to credit life insurance, the total
2-23 amount 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
3-1 amount of unpaid indebtedness, whichever is greater; <, or>
3-2 (ii) as to credit accident and health
3-3 insurance, the total amount repayable under the contract of
3-4 indebtedness and the amount of each periodic indemnity payment
3-5 shall not exceed the scheduled periodic installment payment on the
3-6 indebtedness; or <.>
3-7 (iii) as to involuntary unemployment
3-8 insurance, the total amount repayable under the contract of
3-9 indebtedness, and the amount of each periodic indemnity payment
3-10 shall not exceed the scheduled periodic installment payment on the
3-11 indebtedness.
3-12 SECTION 3. The importance of this legislation and the
3-13 crowded condition of the calendars in both houses create an
3-14 emergency and an imperative public necessity that the
3-15 constitutional rule requiring bills to be read on three several
3-16 days in each house be suspended, and this rule is hereby suspended.