BILL ANALYSIS



S.B. 1222
By: Leedom (Averitt)
05-17-95
Committee Report (Unamended)


BACKGROUND

     The 72nd Legislature repealed a statute requiring insurance
companies to pay life insurance claims within 30 days.  Since then,
no new laws have been passed to encourage insurance companies to
pay claims promptly.

PURPOSE

     S.B. 1222 requires the interest on a life insurance policy to
accrue from the date due proof of loss is received by the insurance
company to the date the insurer accepts the claim and offers to
pay; sets forth the rate of interest.

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 Article 3.48, Insurance Code, to require the
interest on a life insurance policy to accrue from the date due
proof of loss is received by the insurance company to the date the
insurer accepts the claim and offers to pay.  Requires interest to
be paid at the same time that proceeds from the policy are paid
hereunder.  Requires the rate of interest to be either the rate so
provided in the policy or, if there is no such provision in the
policy, the rate of interest on proceeds left on deposit with the
insurer.

SECTION 2. Emergency clause.
           Effective date: upon passage.
       
SUMMARY OF COMMITTEE ACTION

     Pursuant to an announcement filed with the Journal Clerk and
read by the Reading Clerk, in accordance with House Rules, the
House Committee on Insurance met in a formal meeting on May 17,
1995 at desk #24 on the House Floor and was called to order by the
Chair, Representative John Smithee.

     The Chair laid out S.B. 1222 and recognized Representative
Driver who moved the Committee report S.B. 1222 as engrossed to the
full House with the recommendation that it do pass, be printed, and
be sent to the Committee on Local and Consent.  Representative
Duncan seconded the motion and the motion prevailed by the
following vote: AYES: (7); NAYES: (0); PNV: (0); ABSENT: (2).