73R8359 PB-F
          By Hartnett                                           H.B. No. 2191
          Substitute the following for H.B. No. 2191:
          By Rudd                                           C.S.H.B. No. 2191
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the exemption of certain benefits from seizure under
    1-3  process.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Sections 1, 4, and 5, Article 21.22, Insurance
    1-6  Code, are amended to read as follows:
    1-7        Sec. 1.  Notwithstanding any provision of this code other
    1-8  than this article, all money or benefits of any kind, including
    1-9  policy proceeds and cash values, to be paid or rendered to the
   1-10  insured or any beneficiary under any policy of insurance or annuity
   1-11  contract issued by a  life, health or accident insurance company,
   1-12  including mutual and fraternal insurance, or under any plan or
   1-13  program of annuities and benefits in use by any employer or
   1-14  individual, shall:
   1-15              (1)  inure exclusively to the benefit of the person for
   1-16  whose use and benefit the insurance or annuity is designated in the
   1-17  policy or contract;
   1-18              (2)  be fully exempt from execution, attachment,
   1-19  garnishment or other process;
   1-20              (3)  be fully exempt from being seized, taken or
   1-21  appropriated or applied by any legal or equitable process or
   1-22  operation of law to pay any debt or liability of the insured or of
   1-23  any beneficiary, either before or after said money or benefits is
   1-24  or are paid or rendered; and
    2-1              (4)  be fully exempt from all demands in any bankruptcy
    2-2  proceeding of the insured or beneficiary.
    2-3        Sec. 4.  This article does not prevent the proper assignment
    2-4  of any money or benefits to be paid or rendered under an insurance
    2-5  policy or annuity contract to which this article applies, or any
    2-6  rights under the policy or contract, by the insured, <or> owner, or
    2-7  annuitant in accordance with the terms of the policy or contract.
    2-8        Sec. 5.  Wherever any policy of insurance, annuity contract,
    2-9  or plan or program of annuities and benefits mentioned in Section 1
   2-10  of this article shall contain a provision against assignment or
   2-11  commutation by any beneficiary thereunder of the money or benefits
   2-12  to be paid or rendered thereunder, or any rights therein, any
   2-13  assignment or commutation or any attempted assignment or
   2-14  commutation by such beneficiary of such money or benefits or rights
   2-15  in violation of such provision shall be wholly void.
   2-16        SECTION 2.  This Act applies to money or benefits to be paid
   2-17  or rendered to an insured or a beneficiary under an insurance
   2-18  policy or annuity contract issued by a life, health, or accident
   2-19  insurance company without regard to whether the policy or contract
   2-20  was issued or entered into before, on, or after the effective date
   2-21  of this Act.
   2-22        SECTION 3.  The importance of this legislation and the
   2-23  crowded condition of the calendars in both houses create an
   2-24  emergency and an imperative public necessity that the
   2-25  constitutional rule requiring bills to be read on three several
   2-26  days in each house be suspended, and this rule is hereby suspended,
   2-27  and that this Act take effect and be in force from and after its
    3-1  passage, and it is so enacted.