BILL ANALYSIS H.B. 2790 By: Shields 04-06-95 Committee Report (Unamended) BACKGROUND Since the 73rd session, Article 21.22 of the Insurance Code has been debated on three occasions in courts of law. The language is not sufficiently explicit and therefore the decisions have been varied. The addition of Section 7 to Article 21.22 will clarify for the courts the intent of the statute. PURPOSE The addition of Section 7 to Article 21.22 of the Insurance Code clarifies the lawful exemptions and protection from seizure as Article 21.22 relates to Chapter 42 of the Property Code. This bill applies to money or benefits to be paid or rendered to an insured or a beneficiary under an insurance policy or annuity contract by a life, health, or accident insurance company. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Article 21.22 of the Insurance Code is amended by adding Section 7: The exemptions and protection from seizure under this article are in addition to the exemptions under Chapter 42 of the Property Code. SECTION 2. This Act applies to money or benefits to be paid or rendered to an insured or a beneficiary under an insurance policy or annuity contract by an insurance company, regardless of the date on which the policy or contract was issued. SECTION 3. Emergency clause. SUMMARY OF COMMITTEE ACTION The committee considered HB 2790 in a public hearing on April 10, 1995. The following people testified in favor of the bill: Rep. Shields; and Ron Mullen. The bill was reported favorably without amendments, with the recommendation that it do pass and be printed and be sent to the Committee on Local and Consent Calendars, by a record vote of: 8 Ayes, 0 Nays, 0 PNV, 1 Absent.