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.