BILL ANALYSIS


                                                    C.S.S.B. 1222
                                                       By: Leedom
                                             Economic Development
                                                         04-30-95
                                   Committee Report (Substituted)
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The 72nd Legislature repealed a statute requiring insurance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

As proposed, C.S.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 grant any
additional rulemaking authority to a state officer, institution, or
agency.

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.