BILL ANALYSIS H.B. 2893 By: Driver (Shapiro) Economic Development 5-27-95 Senate Committee Report (Unamended) 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. PURPOSE As proposed, H.B. 2893 authorizes the voluntary assignment of the benefits of an annuity contract. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 5, Article 21.22, Insurance Code, as follows: (a) Created from existing text. (b) Provides that an assignment of money or benefits to be paid or rendered under a policy of insurance, annuity contract, or a plan or program of annuities and benefits mentioned in Section 1 of this article is valid if the assignment is voluntary, in writing, supported by consideration, and secured by a pledge of the policy or its proceeds, notwithstanding Subsection (a). SECTION 2. Emergency clause. Effective date: upon passage.