| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the life insurance policy proceeds of an insured |
|
|
defendant indicted for certain offenses under the Penal Code. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Chapter 21, Code of Criminal Procedure, is |
|
|
amended by adding Article 21.32 to read as follows: |
|
|
Art. 21.32. LIFE INSURANCE PROCEEDS ON INDICTMENT FOR |
|
|
CERTAIN OFFENSES. (a) When a defendant is indicted or waives |
|
|
indictment for an offense under Chapter 19 or Section 21.02, 21.11, |
|
|
21.12, or 22.021, Penal Code, the court shall determine whether the |
|
|
defendant is covered by a life insurance policy. |
|
|
(b) If the court determines that the defendant is covered by |
|
|
a life insurance policy, the court shall provide written notice to |
|
|
each: |
|
|
(1) insurer providing a life insurance policy to the |
|
|
defendant; and |
|
|
(2) victim of the offense. |
|
|
(c) If the defendant dies before the disposition of the |
|
|
charge, the court shall order the insurer to pay the proceeds of the |
|
|
life insurance policy to a trustee appointed by the court. |
|
|
(d) The trustee shall hold the proceeds of the life |
|
|
insurance policy in trust until: |
|
|
(1) the statute of limitations on a civil action |
|
|
against the defendant for damages incurred by the victim as a result |
|
|
of the offense for which the defendant was indicted or waived |
|
|
indictment has expired; and |
|
|
(2) there is no civil action or appeal pending against |
|
|
the defendant for damages incurred by the victim as a result of that |
|
|
offense. |
|
|
(e) The trustee shall pay from the trust fund any judgment |
|
|
rendered against the defendant for damages incurred by the victim |
|
|
as a result of the offense for which the defendant was indicted or |
|
|
waived indictment. |
|
|
(f) Within a reasonable time after the date described by |
|
|
Subsection (d), the trustee shall pay the remaining trust funds to |
|
|
the beneficiary or beneficiaries of the life insurance policy if |
|
|
the amount of the trust fund exceeds the amount of any judgment paid |
|
|
under Subsection (e). |
|
|
SECTION 2. Section 1108.053, Insurance Code, is amended to |
|
|
read as follows: |
|
|
Sec. 1108.053. EXCEPTIONS TO EXEMPTIONS. The exemptions |
|
|
provided by Section 1108.051 do not apply to: |
|
|
(1) a premium payment made in fraud of a creditor, |
|
|
subject to the applicable statute of limitations for recovering the |
|
|
payment; |
|
|
(2) a debt of the insured or beneficiary secured by a |
|
|
pledge of the insurance policy or the proceeds of the policy; [or] |
|
|
(3) a child support lien or levy under Chapter 157, |
|
|
Family Code; or |
|
|
(4) a court order under Article 21.32, Code of |
|
|
Criminal Procedure. |
|
|
SECTION 3. (a) Article 21.32, Code of Criminal Procedure, |
|
|
as added by this Act, applies to an indictment presented or waived |
|
|
on or after the effective date of this Act. An indictment presented |
|
|
or waived before the effective date of this Act is governed by the |
|
|
law as it existed immediately before the effective date of this Act, |
|
|
and that law is continued in effect for that purpose. |
|
|
(b) The change in law to Section 1108.053, Insurance Code, |
|
|
made by this Act applies to a judgment in a civil proceeding |
|
|
commenced on or after the effective date of this Act. A judgment in |
|
|
a civil proceeding commenced before the effective date of this Act |
|
|
is governed by the law as it existed immediately before the |
|
|
effective date of this Act, and that law is continued in effect for |
|
|
that purpose. |
|
|
SECTION 4. This Act takes effect September 1, 2017. |