HBA-JLV H.B. 3669 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3669 By: Pitts Financial Institutions 4/11/2001 Introduced BACKGROUND AND PURPOSE Chapter 348 of the Finance Code governs credit sales of motor vehicles, also known as motor vehicle retail installment contracts, which are not legally considered loans. Often in automobile retail installment contracts there occurs the ancillary financing of credit life or credit disability insurance. However, Chapter 24 of the Insurance Code governs loans, not retail installment contracts, that finance insurance premiums. There has come to be some confusion regarding the applicability of Insurance Code provisions outside loans and insurance financing to possibly include motor vehicle retail installment contracts. House Bill 3669 provides that Insurance Code provisions regulating insurance premium loans do not apply to motor vehicle retail installment contracts. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 3669 amends the Finance Code to provide that Insurance Code provisions regulating insurance premium loans do not apply to motor vehicle retail installment contracts. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.