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2015 SESSION

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SB 1225 Life insurance policies and annuity contracts; proceeds and avails of policies and contracts.

Introduced by: Jeffrey L. McWaters | all patrons    ...    notes | add to my profiles

SUMMARY AS PASSED SENATE: (all summaries)

Insurance policies and annuity contracts; exemption from creditors' claims. Provides that in no case shall the cash surrender value or proceeds of any life insurance policy; the withdrawal value of an optional settlement, annuity contract, or deposit with a life insurance company; or any other benefit from such a policy, contract, or deposit, be liable to execution, attachment, garnishment, or other legal process in favor of any creditor of (i) the person whose life is insured by the related policy or contract; (ii) the person who is protected by that contract, deposit, indemnity, policy, or settlement, provided such person is the insured or owner of the contract, deposit, indemnity, policy, or settlement, or the spouse or intended spouse of, a dependent child of, or other person dependent on, the insured or owner of the contract, deposit, indemnity, policy, or settlement; (iii) the person who can, may, or will receive the benefit of such an item, if the person is the insured or owner of the contract, deposit, indemnity, policy, or settlement, or the spouse or intended spouse of, a dependent child of, or other person dependent on, the insured or owner of the contract, deposit, indemnity, policy, or settlement; (iv) the person who owns the related contract, deposit, or policy; or (v) the person who effected the related contract, deposit, or policy. These exemptions from creditors' claims applies regardless of whether the right to change the beneficiary thereof is reserved or permitted or whether the insured person, the annuitant, the owner of the policy or contract, or the person effecting the policy or contract, or any of their estates, is a contingent beneficiary of the policy, contract, or deposit. These provisions do not apply (a) to any claim by a creditor with respect to a life insurance policy, annuity contract, or deposit with an insurance company that was taken out, made, or assigned in writing for the benefit of the creditor, (b) if the policy, contract, or deposit was paid with the intent to defraud creditors, or (c) to a policy, contract, or deposit issued or effected during the six months preceding the date that the person claiming the exemption files a voluntary petition in bankruptcy or is provided similar relief.


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