By Shapiro                                       S.B. No. 599

      75R4878 DLF-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to certain insurance benefits and annuity proceeds.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 5, Article 21.22, Insurance Code, is

 1-5     amended to read as follows:

 1-6           Sec. 5.  (a)  Wherever any policy of insurance, annuity

 1-7     contract, or plan or program of annuities and benefits mentioned in

 1-8     Section 1 of this article shall contain a provision against

 1-9     assignment or commutation by any beneficiary thereunder of the

1-10     money or benefits to be paid or rendered thereunder, or any rights

1-11     therein, any assignment or commutation or any attempted assignment

1-12     or commutation by such beneficiary of such money or benefits or

1-13     rights in violation of such provision shall be wholly void.

1-14           (b)  Notwithstanding Subsection (a) of this section, an

1-15     assignment of the money or benefits to be paid or rendered under a

1-16     policy of insurance, annuity contract, or a plan or program of

1-17     annuities and benefits mentioned in Section 1 of this article is

1-18     valid if the assignment is:

1-19                 (1)  voluntary;

1-20                 (2)  in writing;

1-21                 (3)  supported by consideration; and

1-22                 (4)  secured by a pledge of the policy or its proceeds.

1-23           SECTION 2.  The importance of this legislation and the

1-24     crowded condition of the calendars in both houses create an

 2-1     emergency and an imperative public necessity that the

 2-2     constitutional rule requiring bills to be read on three several

 2-3     days in each house be suspended, and this rule is hereby suspended,

 2-4     and that this Act take effect and be in force from and after its

 2-5     passage, and it is so enacted.