By:  Hartnett                                         H.B. No. 2191
       73R5077 PB-F
                                 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 insurance policy or annuity
   1-11  policy <of insurance> issued by a life, health or accident
   1-12  insurance company, including mutual and fraternal insurance, or
   1-13  under any plan or program of annuities and benefits in use by any
   1-14  employer or individual, shall:
   1-15              (1)  inure exclusively to the benefit of the person for
   1-16  whose use and benefit the insurance is designated in the policy;
   1-17              (2)  be fully exempt from execution, attachment,
   1-18  garnishment or other process;
   1-19              (3)  be fully exempt from being seized, taken or
   1-20  appropriated or applied by any legal or equitable process or
   1-21  operation of law to pay any debt or liability of the insured or of
   1-22  any beneficiary, either before or after said money or benefits is
   1-23  or are paid or rendered; and
   1-24              (4)  be fully exempt from all demands in any bankruptcy
    2-1  proceeding of the insured or beneficiary.
    2-2        Sec. 4.  This article does not prevent the proper assignment
    2-3  of any money or benefits to be paid or rendered under a <an
    2-4  insurance> policy to which this article applies, or any rights
    2-5  under the policy, by the insured or owner in accordance with the
    2-6  terms of the policy.
    2-7        Sec. 5.  Wherever any insurance policy, annuity policy, <of
    2-8  insurance> or plan or program of annuities and benefits mentioned
    2-9  in Section 1 of this article shall contain a provision against
   2-10  assignment or commutation by any beneficiary thereunder of the
   2-11  money or benefits to be paid or rendered thereunder, or any rights
   2-12  therein, any assignment or commutation or any attempted assignment
   2-13  or commutation by such beneficiary of such money or benefits or
   2-14  rights in violation of such provision shall be wholly void.
   2-15        SECTION 2.  This Act applies to money or benefits to be paid
   2-16  or rendered to an insured or a beneficiary under an insurance
   2-17  policy or annuity policy issued by a life, health, or accident
   2-18  insurance company without regard to whether the policy was issued
   2-19  before, on, or after the effective date of this Act.
   2-20        SECTION 3.  The importance of this legislation and the
   2-21  crowded condition of the calendars in both houses create an
   2-22  emergency and an imperative public necessity that the
   2-23  constitutional rule requiring bills to be read on three several
   2-24  days in each house be suspended, and this rule is hereby suspended,
   2-25  and that this Act take effect and be in force from and after its
   2-26  passage, and it is so enacted.