BWM H.B. 2274 75(R)BILL ANALYSIS


FINANCIAL INSTITUTIONS
H.B. 2274
By: Shields
3-20-97
Committee Report (Unamended)



BACKGROUND 

Since the 73rd session, Article 21.22 of the Insurance Code has been
debated on at least six occasions in courts of law.  The language is not
sufficiently explicit as whether unlimited exemptions for insurance
proceeds are in addition to the exemptions from seizure under Chapter 42
of the Property code and therefore the court decisions have split.  The
addition of Section 7 to Article 21.22 serves to clarify the legislative
intent for the courts. 

 
PURPOSE

To clarify the legislative intent that insurance benefits and certain
annuities exemption from seizure is in addition to exemptions given under
Chapter 42 of the Property Code. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1: Amends Article 21.22, Insurance Code, by adding Section 7 which
states that exemptions and protections from seizures under this article
are in addition to exemptions under Chapter 42, Property Code. 

SECTION 2:  States that this Act applies to money or benefits paid or
rendered under an   insurance contract covered by this Article regardless
of whether that contract was entered into before, on or after the
effective date of this Act. 

SECTION 3: Emergency Clause.