79C38(4) KLA

 

CHAPTER 3501.  CREDIT INVOLUNTARY UNEMPLOYMENT INSURANCE

Revised Law

Sec. 3501.001.  DEFINITION.  In this chapter, "credit involuntary unemployment insurance" means insurance that indemnifies a debtor for installment or other periodic payments on an indebtedness while the debtor is involuntarily unemployed. The term includes policy forms and endorsements that define involuntary unemployment to provide coverage and a premium charge for interruption or reduction of a debtor's income during periods of leave, whether paid or unpaid, authorized by the federal Family and Medical Leave Act of 1993 (29 U.S.C. Section 2601 et seq.), as amended, or other state or federal law.  (V.T.I.C. Art. 21.79E (part).)

Source Law

Art. 21.79E.  [Any insurer authorized to write any form of casualty insurance in this state shall also be authorized to write group or individual] credit involuntary unemployment insurance indemnifying a debtor for installment or other periodic payments on the indebtedness while the debtor is involuntarily unemployed, including policy forms and endorsements which define involuntary unemployment to provide coverage and a premium charge for interruption or reduction of a debtor's income during periods of leave (paid or otherwise) authorized by the Federal Family and Medical Leave Act of 1993 (29 U.S.C. Section 2601 et seq.), as amended, or other state or federal laws… .

Revisor's Note

The definition of "credit involuntary unemployment insurance" is added to the revised law for drafting convenience and to eliminate unnecessary repetition of the substance of the definition.

Revised Law

Sec. 3501.002.  AUTHORIZATION.  (a)  Any insurer authorized to write any form of casualty insurance in this state may also write group or individual credit involuntary unemployment insurance.

(b)  Credit involuntary unemployment insurance may be written alone or in conjunction with credit life insurance, credit accident and health insurance, or both, in a policy issued by an authorized insurer.

(c)  Credit involuntary unemployment insurance may not be written in contravention of Chapter 15, Business & Commerce Code.  (V.T.I.C. Art. 21.79E (part).)

Source Law

Art. 21.79E.  Any insurer authorized to write any form of casualty insurance in this state shall also be authorized to write group or individual credit involuntary unemployment insurance … .  Such insurance may be written alone or in conjunction with credit life insurance, credit accident and health insurance, or both, in policies issued by any authorized insurer, but not in contravention of the Texas Free Enterprise and Antitrust Act of 1983 (Chapter 15, Business & Commerce Code)… .

Revised Law

Sec. 3501.003.  RATES AND FORMS.  Rates and forms for credit involuntary unemployment insurance must be set and filed in accordance with Chapters 2251 and 2301 and Article 5.13-2.  (V.T.I.C. Art. 21.79E (part).)

Source Law

Art. 21.79E… .  Rates and forms for such insurance may be made and filed in accordance with Article 5.13-2 of this code.

Revisor's Note

V.T.I.C. Article 21.79E states that rates and forms for credit involuntary unemployment insurance "may be made and filed" in accordance with V.T.I.C. Article 5.13-2, revised in part in Chapters 2251 and 2301 of this code.  Although Chapter 2251 is also derived in part from V.T.I.C. Article 5.13-2C and Chapter 2301 is also derived in part from V.T.I.C. Article 5.145, the revised law appropriately refers to both chapters in their entirety because Article 5.13-2C relates only to certain insurers writing residential property insurance and Article 5.145 relates only to personal automobile and residential property insurance;  therefore, the provisions of Chapters 2251 and 2301 derived from Articles 5.13-2C and 5.145 are inapplicable by their own terms to rates and forms for credit involuntary unemployment insurance.

In addition, the revised law substitutes "must" for "may" because Article 5.13-2 was amended by Chapter 206, Acts of the 78th Legislature, Regular Session, 2003, to list involuntary unemployment insurance as a type of insurance to which that article applies.  As a result, it is clear that rates and forms for credit involuntary unemployment insurance are required to be set and filed in accordance with Article 5.13-2, and the revised law is drafted accordingly.