ORIGINAL HOUSE

BILL NO. 0235

ENROLLED ACT NO. 66, HOUSE OF REPRESENTATIVES

FIFTY-SIXTH LEGISLATURE OF THE STATE OF WYOMING

2001 GENERAL SESSION

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

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

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

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

(a) If a policy of insurance is executed by any
person on his own life or on another life, in favor of a
person other than himself, or except in cases of transfer
with intent to defraud creditors, if a policy of life
insurance is assigned or in any way made payable to that
person, the lawful beneficiary or assignee thereof, other
than the insured or the person executing insurance or
executors or administrators of the insured or the person
executing the insurance, are entitled to its proceeds,
including death benefits, cash surrender and loan values,
premiums waived and dividends, whether used in reduction of
premiums or otherwise, excepting only where the debtor,
subsequent to issuance of the policy, has actually elected
to receive the dividends in cash, against the creditors and
representatives of the insured and of the person executing
the policy, and are not liable to be applied by any legal
or equitable process to pay any debt or liability of the
insured individual or his beneficiary or of any other
person having a right under the policy, whether or not:

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

(a) A policy of group life insurance or group
disability insurance or the proceeds thereof, including

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death benefits, cash surrender and loan values, premiums
waived and dividends, whether used in reduction of premiums
or otherwise, excepting only where the debtor, subsequent
to issuance of the policy, has actually elected to receive
the dividends in cash, payable to the individual insured or
to the named beneficiary are not liable to be applied by
any legal or equitable process to pay any debt or liability
of the insured individual or his beneficiary or of any
other person having a right under the policy. The proceeds,
when not made payable to a named beneficiary, or to a third
person pursuant to a facility-of-payment clause, do not
constitute a part of the insured individual's estate for
the payment of his debts.

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

(END)

Speaker of the House President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the House.

Chief Clerk

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