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.