BILL ANALYSIS



C.S.H.B. 2893
By: Driver
04-26-95
Committee Report (Substituted)


BACKGROUND

     Article 21.22, Insurance Code, protects annuity beneficiaries
from general creditors.  Section 5 makes void any assignment or
commutation by a beneficiary if the insurance policy or annuity
contract includes a provision against assignment or commutation of
benefits.  Annuity beneficiaries sometimes need to assign their
benefits for financial or other reasons but are prevented from
doing so under Section 5 as it is written.

PURPOSE

     As proposed, House Bill 2893 would permit the voluntary
assignment of the benefits of an annuity contract.

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.

Amends Section 5, Article 21.22, Insurance Code, to permit the
voluntary assignment of an annuity contract, in writing, supported
by consideration and secured by a pledge of the policy or its
proceeds. 

SECTION 2.  Emergency clause; Effective date


COMPARISON OF ORIGINAL TO SUBSTITUTE

     The filed bill incorrectly inserted the new language in
Section 6, Article 21.22.  The substitute corrects the error by
inserting the language in Section 5 of the article.  The new 
language in the original version was revised by Legislative Council
in the substitute to more artfully carry out the original intent of
the bill.  

SUMMARY OF COMMITTEE ACTION

     In accordance with House rules, H.B. 2893 was heard in a
public hearing on April 26, 1995.  The Chair laid out H.B. 2893 and
a substitute to H.B. 2893 and recognized the following person to
testify in support of H.B. 2893: E. Kenneth Tooley, Texas
Association of Life Underwriters.  The Chair recognized
Representative Counts who moved the Committee adopt the substitute
to H.B. 2893.  The Chair heard no objections and the substitute to
H.B. 2893 was adopted. 

     The Chair recognized Representative Counts who moved the
Committee report H.B. 2893 as substituted to the full House with
the recommendation that it do pass, be printed, and be sent to the
Committee on Local and Consent.  Representative Averitt seconded
the motion and the motion prevailed by the following vote: AYES
(6); NAYES (0); ABSENT (3); PNV (0).