By: Leedom S.B. No. 1222 A BILL TO BE ENTITLED AN ACT 1-1 relating to the payment of interest to designated beneficiaries. 1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-3 SECTION 1. Article 3.48, Insurance Code, is amended to read 1-4 as follows: 1-5 Art. 3.48. PAYMENTS TO DESIGNATED BENEFICIARIES. Whenever 1-6 any person shall procure the issuance of a policy of insurance on 1-7 his or her life in any legal reserve life insurance company, and 1-8 designate in writing filed with the company the beneficiary to 1-9 receive the proceeds thereof, the company issuing such policy 1-10 shall, in the absence of the receipt by it of notice of an adverse 1-11 claim to the proceeds of the policy from one having a bona fide 1-12 legal claim to such proceeds or a part thereof, pay such proceeds 1-13 becoming due on the death of the insured to the person so 1-14 designated as beneficiary, and such payment so made, in the absence 1-15 of such notice received by the insurance company prior to the date 1-16 of the payment of the proceeds, shall discharge the company from 1-17 all liability under the policy. 1-18 Interest shall accrue from the date due proof of loss is 1-19 received by the insurance company to the date the insurer accepts 1-20 the claim and offers to pay. Interest shall be paid at the same 1-21 time that proceeds from the policy are paid under this article. 1-22 The rate of interest shall be either the rate so provided in the 1-23 policy or, if there is no such provision in the policy, the rate of 2-1 interest on proceeds left on deposit with the insurer. 2-2 The provisions of this article shall apply to all policies 2-3 now in existence as well as to all policies hereafter written. 2-4 SECTION 2. The importance of this legislation and the 2-5 crowded condition of the calendars in both houses create an 2-6 emergency and an imperative public necessity that the 2-7 constitutional rule requiring bills to be read on three several 2-8 days in each house be suspended, and this rule is hereby suspended, 2-9 and that this Act take effect and be in force from and after its 2-10 passage, and it is so enacted.