By: Rosson S.B. No. 1451 A BILL TO BE ENTITLED AN ACT 1-1 relating to the disclosure of installment payment plan options to 1-2 consumers purchasing certain motor vehicle insurance. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subchapter A, Chapter 21, Insurance Code, is 1-5 amended by adding Article 21.15-7 to read as follows: 1-6 Art. 21.15-7. INSTALLMENT PAYMENT OPTION DISCLOSURE 1-7 Sec. 1. APPLICABILITY. This article applies to any agent or 1-8 solicitor licensed to sell private passenger motor vehicle 1-9 insurance policies in this state, including agents for county 1-10 mutual insurance companies, Lloyd's associations, interinsurance 1-11 exchanges, and reciprocals. 1-12 Sec. 2. DISCLOSURE REQUIRED. An insurance agent offering or 1-13 selling private passenger motor vehicle insurance in this state 1-14 must disclose to the insured or prospective insured all payment 1-15 plan options, including the payment plan available to an applicant 1-16 for insurance through the Texas Automobile Insurance Plan 1-17 Association (TAIPA), if applicable. If the agent offers a premium 1-18 finance loan as one option, the agent must also provide a 1-19 comparison between the terms of the premium loan and the payment 1-20 plan available through the insurer. Such disclosure must include a 1-21 comparison of the down payments, the monthly payments, and the 1-22 total amounts of the finance charges and monthly service charges. 1-23 The disclosure and comparison shall be made on a standard 2-1 disclosure form in English and Spanish, to be adopted by the 2-2 commissioner. 2-3 Sec. 3. EXEMPTION. An agent is not required to disclose an 2-4 installment payment plan option to an insured or applicant for 2-5 insurance coverage who, during the two years preceding the date of 2-6 the application for insurance coverage or the renewal of existing 2-7 insurance coverage, has been a named insured on a private passenger 2-8 motor vehicle insurance policy canceled for nonpayment of required 2-9 premiums. 2-10 SECTION 2. This Act takes effect September 1, 1995, and 2-11 applies only to a private passenger motor vehicle insurance policy 2-12 that is delivered, issued for delivery, or renewed on or after 2-13 January 1, 1996. A policy that is delivered, issued for delivery, 2-14 or renewed before January 1, 1996, is governed by the law as it 2-15 existed immediately before the effective date of this Act, and that 2-16 law is continued in effect for that purpose. 2-17 SECTION 3. The importance of this legislation and the 2-18 crowded condition of the calendars in both houses create an 2-19 emergency and an imperative public necessity that the 2-20 constitutional rule requiring bills to be read on three several 2-21 days in each house be suspended, and this rule is hereby suspended.