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.