HB0235 - Insurance proceeds-creditor's rights.
2001 |
State of Wyoming |
01LSO-0585 |
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, whether or not:
12
13 26-15-131. Exemption of proceeds; group insurance.
14
15 (a) A policy of
group life insurance or group
16 disability insurance or the proceeds thereof, including
17 death benefits,
cash surrender and loan values, premiums
18 waived and
dividends, whether used in reduction of premiums
19 or otherwise,
excepting only where the debtor, subsequent
20 to issuance of
the policy, has actually elected to receive
21 the dividends in
cash, payable to the individual insured or
22 to the named beneficiary are not liable to be
applied by
23 any legal or equitable process to pay any
debt or liability
24 of the insured individual or his beneficiary
or of any
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1 other
person having a right under the policy. The proceeds,
2 when
not made payable to a named beneficiary, or to a third
3
person pursuant to a facility-of-payment clause, do not
4
constitute a part of the insured individual's estate for
5 the
payment of his debts.
6
7 Section 2. This act is effective July 1, 2001.
8
9 (END)
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