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.