78S20036 AJA-F


By:  Swinford                                                     H.B. No. 7  



A BILL TO BE ENTITLED

AN ACT

relating to the abandonment of proceeds distributable on 
reorganization of an insurance company.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 72.101, Property Code, is amended by 
adding Subsections (c) and (d) to read as follows:
	(c)  Property distributable in the course of a 
demutualization or related reorganization of an insurance company 
is presumed abandoned on the first anniversary of the date the 
property becomes distributable if, at the time of the first 
distribution, the last known address of the owner according to the 
records of the holder of the property is known to be incorrect or 
the distribution or statements related to the distribution are 
returned by the post office as undeliverable and the owner has not:
		(1)  communicated in writing with the holder of the 
property or the holder's agent regarding the interest; or
		(2)  otherwise communicated with the holder regarding 
the interest as evidenced by a memorandum or other record on file 
with the holder or its agents.
	(d)  Property distributable in the course of a 
demutualization or related reorganization of an insurance company 
that is not subject to Subsection (c) is presumed abandoned as 
otherwise provided by this section.
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect December 1, 2003.