SRC-HRD H.B. 2274 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 2274
By: Shields (Brown)
Jurisprudence
4-24-97
Engrossed


DIGEST 

Since the 73rd Legislature, Article 21.22 of the Insurance Code has been
debated on at least six occasions in courts of law.  There are concerns
that the language is not sufficiently explicit regarding whether unlimited
exemptions for insurance proceeds are in addition to the exemptions from
seizure under Chapter 42 of the Property Code. As a result, the courts
have interpreted the law inconsistently.  The addition of Section 7 to
Article 21.22 serves to clarify the legislative intent for the courts.

PURPOSE

As proposed, H.B. 2274 clarifies the legislative intent that the exemption
of insurance benefits and certain annuities from seizure is in addition to
exemptions given under Chapter 42 of the Property Code.                   
                        
RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Article 21.22, Insurance Code, by adding Section 7, as
follows: 

Sec. 7.  Provides that the exemptions and protection from seizure under
this article are in additional to the exemptions from garnishment,
attachment, execution, or other seizure under Chapter 42, Property Code. 

SECTION 2. Provides that this Act applies to money or benefits paid or
rendered to an insured or a beneficiary under an insurance policy or
annuity issued by a life, health, or accident insurance company without
regard to whether the policy or contract was issued or entered into
before, on, or after the effective date of this Act. 

SECTION 3. Emergency clause.
  Effective date: upon passage.