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C.S.S.B. 1222 By: Leedom Economic Development 04-30-95 Committee Report (Substituted) BACKGROUND The 72nd Legislature repealed a statute requiring insurance companies to pay life insurance claims within 30 days.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.