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.