By: Longoria H.B. No. 3448       A BILL TO BE ENTITLED   AN ACT   relating to single premium term life insurance offered in   connection with certain consumer loans.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter I, Chapter 342, Finance Code, is   amended by adding Section 342.4022 to read as follows:          Sec. 342.4022.  SINGLE PREMIUM TERM LIFE INSURANCE.  (a) On   a loan made under this chapter that is subject to Subchapter E, a   lender:                (1)  may, through a properly licensed insurance agent,   offer a borrower single premium term life insurance;                (2)  may not require the borrower to accept the   insurance described by Subdivision (1);                (3)  shall provide the borrower with the option to pay   the insurance premium from the borrower's own funds or to pay the   premium with a portion of the loan proceeds; and                (4)  before completing the transaction, shall provide   to and review with the borrower a disclosure that specifies:                      (A)  the total dollar amount of the term life   insurance premium, and a comparison between:                            (i)  the amount of the payment due on the   loan with the additional purchase of the term life insurance   policy; and                            (ii)  the amount of the payment due on the   loan without the additional purchase of the term life insurance   policy; and                      (B)  if there is any shared interest or ownership,   including any common third-party ownership, between the insurance   company and the lender, then the lender must disclose the fact of   the shared interest or ownership.          (b)  The finance commission by rule shall prescribe the form   and the content of the disclosures required by Subsection (a)(4).          SECTION 2.  Section 342.407, Finance Code, is amended to   read as follows:          Sec. 342.407.  REQUIREMENTS FOR INCLUDING INSURANCE CHARGE   IN CONTRACT. Insurance for which a charge is included in a loan   contract must be written:                (1)  at lawful rates;                (2)  in accordance with the Insurance Code; [and]                (3)  by a company authorized to do business in this   state; and                (4)  through an insurance agent licensed in accordance   with the Insurance Code, if the included charge is offered under   Section 342.4022 of this code.          SECTION 3.  Section 342.412, Finance Code, is amended to   read as follows:          Sec. 342.412.  ACTION UNDER SUBCHAPTER NOT SALE OF     INSURANCE. Except for the sale of a single premium term life   insurance policy to a borrower under Section 342.4022, arranging   [Arranging] for insurance or collecting an identifiable charge as   authorized by this subchapter is not a sale of insurance.          SECTION 4.  Section 342.4022, Finance Code, as added by this   Act, applies only to an insurance policy that is delivered, issued   for delivery, or renewed on or after January 1, 2018. A policy   delivered, issued for delivery, or renewed before January 1, 2018,   is governed by the law as it existed immediately before the   effective date of this Act, and the former law is continued in   effect for that purpose.          SECTION 5.  This Act takes effect January 1, 2018.