HB0235 - Insurance proceeds-creditor's rights.

 

2001

State of Wyoming

01LSO-0585.E1 ENGROSSED

 

 

 

HOUSE BILL NO.  HB0235

 

 

Insurance proceeds-creditor's rights.

 

Sponsored by:  Representative(s) McOmie and Ross and
Senator(s) Case

 

 

A BILL

 

for

 

 1  AN ACT relating to insurance; clarifying proceeds of life
 2  or disability insurance not subject to creditors; and
 3  providing for an effective date.

 4 

 5  Be It Enacted by the Legislature of the State of Wyoming:

 6 

 7         Section 1.  W.S. 26-15-129(a)(intro) and 26-15-131(a)
 8  are amended to read:

 9 

10         26-15-129.  Exemption of proceeds; life insurance.

11 

12         (a)  If a policy of insurance is executed by any
13  person on his own life or on another life, in favor of a
14  person other than himself, or except in cases of transfer
15  with intent to defraud creditors, if a policy of life
16  insurance is assigned or in any way made payable to that

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 1  person, the lawful beneficiary or assignee thereof, other
 2  than the insured or the person executing insurance or
 3  executors or administrators of the insured or the person
 4  executing the insurance, are entitled to its proceeds,
 5  including death benefits, cash surrender and loan values,
 6  premiums waived and dividends, whether used in reduction of
 7  premiums or otherwise, excepting only where the debtor,
 8  subsequent to issuance of the policy, has actually elected
 9  to receive the dividends in cash, against the creditors and
10  representatives of the insured and of the person executing
11  the policy, and are not liable to be applied by any legal
12  or equitable process to pay any debt or liability of the
13  insured individual or his beneficiary or of any other
14  person having a right under the policy, whether or not:

15 

16         26-15-131.  Exemption of proceeds; group insurance.

17 

18         (a)  A policy of group life insurance or group
19  disability insurance or the proceeds thereof, including
20  death benefits, cash surrender and loan values, premiums
21  waived and dividends, whether used in reduction of premiums
22  or otherwise, excepting only where the debtor, subsequent
23  to issuance of the policy, has actually elected to receive
24  the dividends in cash, payable to the individual insured or

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 1  to the named beneficiary are not liable to be applied by
 2  any legal or equitable process to pay any debt or liability
 3  of the insured individual or his beneficiary or of any
 4  other person having a right under the policy. The proceeds,
 5  when not made payable to a named beneficiary, or to a third
 6  person pursuant to a facility-of-payment clause, do not
 7  constitute a part of the insured individual's estate for
 8  the payment of his debts.

 9 

10         Section 2.  This act is effective July 1, 2001.

11 

12                         (END)

 

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