1-1 By: Driver (Senate Sponsor - Shapiro) H.B. No. 2893
1-2 (In the Senate - Received from the House May 10, 1995;
1-3 May 11, 1995, read first time and referred to Committee on Economic
1-4 Development; May 26, 1995, reported favorably by the following
1-5 vote: Yeas 10, Nays 0; May 26, 1995, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to certain insurance benefits and annuity proceeds.
1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 SECTION 1. Section 5, Article 21.22, Insurance Code, is
1-11 amended to read as follows:
1-12 Sec. 5. (a) Wherever any policy of insurance, annuity
1-13 contract, or plan or program of annuities and benefits mentioned in
1-14 Section 1 of this article shall contain a provision against
1-15 assignment or commutation by any beneficiary thereunder of the
1-16 money or benefits to be paid or rendered thereunder, or any rights
1-17 therein, any assignment or commutation or any attempted assignment
1-18 or commutation by such beneficiary of such money or benefits or
1-19 rights in violation of such provision shall be wholly void.
1-20 (b) Notwithstanding Subsection (a) of this section, an
1-21 assignment of the money or benefits to be paid or rendered under a
1-22 policy of insurance, annuity contract, or a plan or program of
1-23 annuities and benefits mentioned in Section 1 of this article is
1-24 valid if the assignment is:
1-25 (1) voluntary;
1-26 (2) in writing;
1-27 (3) supported by consideration; and
1-28 (4) secured by a pledge of the policy or its proceeds.
1-29 SECTION 2. The importance of this legislation and the
1-30 crowded condition of the calendars in both houses create an
1-31 emergency and an imperative public necessity that the
1-32 constitutional rule requiring bills to be read on three several
1-33 days in each house be suspended, and this rule is hereby suspended,
1-34 and that this Act take effect and be in force from and after its
1-35 passage, and it is so enacted.
1-36 * * * * *