By Burnam H.B. No. 1755 75R4804 BEM-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to a mortgage guaranty insurance policy. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Article 21.50, Insurance Code, is amended by 1-5 adding Sections 1B and 1C to read as follows: 1-6 Sec. 1B. NOTICE TO BORROWER. A mortgage guaranty insurer 1-7 shall provide annually to the borrower a copy of the following 1-8 written notice printed in at least 10-point bold-faced type: 1-9 "NOTICE TO BORROWER: If the principal balance of the loan on 1-10 your property is 80 percent or less of its appraised fair market 1-11 value, you may be entitled to cancel or not renew your mortgage 1-12 guaranty insurance policy and receive a refund of any unearned 1-13 premiums on the policy following the cancellation or nonrenewal. 1-14 Your loan payments may be reduced as a result of a cancellation or 1-15 nonrenewal of your policy. A request to cancel or nonrenew your 1-16 policy must be made to your lender." 1-17 Sec. 1C. REFUND. The borrower shall be treated as the 1-18 purchaser of the policy of mortgage guaranty insurance for the 1-19 purpose of a refund of any unearned premiums on cancellation of the 1-20 policy. 1-21 SECTION 2. (a) This Act takes effect September 1, 1997. 1-22 (b) Section 1C, Article 21.50, Insurance Code, as added by 1-23 this Act, applies to an insurance policy that is delivered, issued 1-24 for delivery, or renewed on or after January 1, 1998. A policy 2-1 delivered, issued for delivery, or renewed before January 1, 1998, 2-2 is governed by the law as it existed immediately before the 2-3 effective date of this Act, and that law is continued in effect for 2-4 that purpose. 2-5 SECTION 3. The importance of this legislation and the 2-6 crowded condition of the calendars in both houses create an 2-7 emergency and an imperative public necessity that the 2-8 constitutional rule requiring bills to be read on three several 2-9 days in each house be suspended, and this rule is hereby suspended.