1-1  By:  Leedom                                           S.B. No. 1222
    1-2        (In the Senate - Filed March 10, 1995; March 16, 1995, read
    1-3  first time and referred to Committee on Economic Development;
    1-4  April 28, 1995, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 9, Nays 0; April 28, 1995,
    1-6  sent to printer.)
    1-7  COMMITTEE SUBSTITUTE FOR S.B. No. 1222                  By:  Leedom
    1-8                         A BILL TO BE ENTITLED
    1-9                                AN ACT
   1-10  relating to the payment of interest to designated beneficiaries.
   1-11        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-12        SECTION 1.  Article 3.48, Insurance Code, is amended to read
   1-13  as follows:
   1-14        Art. 3.48.  PAYMENTS TO DESIGNATED BENEFICIARIES.  Whenever
   1-15  any person shall procure the issuance of a policy of insurance on
   1-16  his or her life in any legal reserve life insurance company, and
   1-17  designate in writing filed with the company the beneficiary to
   1-18  receive the proceeds thereof, the company issuing such policy
   1-19  shall, in the absence of the receipt by it of notice of an adverse
   1-20  claim to the proceeds of the policy from one having a bona fide
   1-21  legal claim to such proceeds or a part thereof, pay such proceeds
   1-22  becoming due on the death of the insured to the person so
   1-23  designated as beneficiary, and such payment so made, in the absence
   1-24  of such notice received by the insurance company prior to the date
   1-25  of the payment of the proceeds, shall discharge the company from
   1-26  all liability under the policy.
   1-27        Interest shall accrue from the date due proof of loss is
   1-28  received by the insurance company to the date the insurer accepts
   1-29  the claim and offers to pay.  Interest shall be paid at the same
   1-30  time that proceeds from the policy are paid under this article.
   1-31  The rate of interest shall be either the rate so provided in the
   1-32  policy or, if there is no such provision in the policy, the rate of
   1-33  interest on proceeds left on deposit with the insurer.
   1-34        The provisions of this article shall apply to all policies
   1-35  now in existence as well as to all policies hereafter written.
   1-36        SECTION 2.  The importance of this legislation and the
   1-37  crowded condition of the calendars in both houses create an
   1-38  emergency and an imperative public necessity that the
   1-39  constitutional rule requiring bills to be read on three several
   1-40  days in each house be suspended, and this rule is hereby suspended,
   1-41  and that this Act take effect and be in force from and after its
   1-42  passage, and it is so enacted.
   1-43                               * * * * *