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 * * * * *