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.
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