SRC-AAA S.B. 599 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 599
By: Shapiro
Economic Development
4-23-97
As Filed


DIGEST 

Currently, under Article 21.22, Insurance Code, any assignment or 
commutation by a beneficiary is 
void if the insurance policy or annuity contract contains a 
provision against the assignment or 
commutation of benefits.  In some instances, an annuity 
beneficiary may want to assign his or her 
benefits for financial or other reasons.  S.B. 599 would 
authorize the assignment of benefits if the 
assignment is voluntary, in writing, supported by consideration, 
and secured by a pledge of the policy 
or its proceeds.

PURPOSE

As proposed S.B. 599 sets forth the requirements of a valid 
assignment of money or benefits to be 
paid under an insurance policy.

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(5), Insurance Code, to provide 
that notwithstanding Subsection 
(a), an assignment of money or benefits to be paid under a policy 
of insurance, annuity contract, or 
plan of annuities or benefits mentioned in Section 1 of this 
article is valid under certain 
circumstances. Makes a conforming change. 

SECTION 2. Emergency clause.