SEARCH SITE

VIRGINIA LAW PORTAL

SEARCHABLE DATABASES

ACROSS SESSIONS

Developed and maintained by the Division of Legislative Automated Systems.

2016 SESSION

  • | print version

SB 640 Annuity contracts and life insurance policies; exemption from certain creditors' claims.

Introduced by: William M. Stanley, Jr. | all patrons    ...    notes | add to my profiles

SUMMARY AS PASSED SENATE: (all summaries)

Insurance policies and annuity contracts; exemption from creditors' claims. Provides that the cash surrender value or proceeds of any policy of life insurance or annuity contract, the withdrawal value of an optional settlement or deposit with any company made pursuant to such a policy, or any other benefit from such a policy shall not 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 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 any other person dependent on the insured or owner of the contract, deposit, indemnity, policy, or settlement; (iii) the person who owns the related contract, deposit, or policy; or (iv) the person who effected the related contract, deposit, or policy. These exemptions from creditors' claims apply regardless of whether the right to change the beneficiary thereof is reserved or permitted or 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 protected insurance item 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.


FULL TEXT

HISTORY