1-1 By: Driver (Senate Sponsor - Shapiro) H.B. No. 1670 1-2 (In the Senate - Received from the House May 1, 1995; 1-3 May 2, 1995, read first time and referred to Committee on Economic 1-4 Development; May 18, 1995, reported favorably by the following 1-5 vote: Yeas 8, Nays 0; May 18, 1995, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to the assignment of certain insurance agents' 1-9 commissions. 1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-11 SECTION 1. Section 18, Article 21.07, Insurance Code, is 1-12 amended to read as follows: 1-13 Sec. 18. Assignment of Agent's Commissions. (a) 1-14 Notwithstanding any provisions of either this Article or of the 1-15 Insurance Code to the contrary, an employee, officer, director, or 1-16 shareholder of a state or national bank, a state or federal savings 1-17 and loan association or corporation, or a state or federal credit 1-18 union, who is licensed as an agent under this Article and who 1-19 enters into a contract with an insurer to act as the insurer's 1-20 agent in soliciting or writing policies or certificates of credit 1-21 life insurance, credit accident and health insurance, or both, 1-22 covering debtors of the bank, savings and loan, or credit union in 1-23 which such agent is an employee, officer, director, or shareholder, 1-24 may assign and transfer to such bank, savings and loan, or credit 1-25 union any commissions, fees, or other compensation to be paid to 1-26 such agent under the agent's contract with the insurer. 1-27 (b) Notwithstanding any provisions of either this Article or 1-28 of the Insurance Code to the contrary, an employee, officer, 1-29 director, or shareholder of a dealer who holds a valid dealer's 1-30 general distinguishing number issued by the Texas Department of 1-31 Transportation pursuant to the authority of Article 6686, Revised 1-32 Statutes, who is licensed as an agent under this Article, and who 1-33 enters into a contract with an insurer to act as the insurer's 1-34 agent in soliciting or writing policies or certificates of credit 1-35 life insurance, credit accident and health insurance, or both, may 1-36 assign and transfer to the dealer or any affiliate of the dealer, 1-37 any commissions, fees, or other compensation to be paid to the 1-38 agent under the agent's contract with the insurer. 1-39 SECTION 2. The importance of this legislation and the 1-40 crowded condition of the calendars in both houses create an 1-41 emergency and an imperative public necessity that the 1-42 constitutional rule requiring bills to be read on three several 1-43 days in each house be suspended, and this rule is hereby suspended, 1-44 and that this Act take effect and be in force from and after its 1-45 passage, and it is so enacted. 1-46 * * * * *