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.