Sec. 38a-453. (Formerly Sec. 38-161). Rights of creditors of insured against beneficiary.
Sec. 38a-453. (Formerly Sec. 38-161). Rights of creditors of insured against
beneficiary. (a) The beneficiary of any life insurance policy, being a person other than
the insured, whether named as beneficiary in the original policy or subsequently named
as beneficiary in accordance with the terms of the policy, shall be entitled to the proceeds
of the policy as against the representatives or creditors of the insured, unless the policy
was procured or the designation of a beneficiary was made with intent, express or implied, to defraud creditors.
(b) If any such policy was procured or any such designation made with the intent,
express or implied, to defraud creditors, the proceeds thereof shall become a part of the
estate of the insured, and the executor or administrator of the estate shall collect the
insurance and use the proceeds thereof so far as it is required for the expenses of administration and the payment of debts and pay over the balance, if any, to the beneficiary of
the policy. If any premiums paid on the insurance policy were paid with the intent,
express or implied, to defraud creditors, the amount of the premiums so paid, with
interest thereon, shall become a part of the estate and shall be dealt with as above provided.
(c) The company issuing the policy shall be discharged of all liability thereunder
by payment of the proceeds in accordance with the terms of the policy unless, before
such payment, the company has received written notice, from a creditor, executor or
administrator of the insured, that the policy was procured or premiums were paid thereon
with intent to defraud creditors. That notice may be disregarded by the company unless
proper legal proceedings to enforce the claim are begun within three months from the
giving of the notice.
(d) This section shall apply to any policy of insurance issued before July 1, 1933,
but not to policies which matured by the death of the insured before July 1, 1933.
(1949 Rev., S. 6150; P.A. 90-243, S. 65.)
History: P.A. 90-243 divided the section into Subsecs. and made technical changes for statutory consistency; Sec. 38-161 transferred to Sec. 38a-453 in 1991.
Annotations to former section 38-161:
Where husband assigned insurance on his life as security for bank loan, joinder by wife in assignment did not defeat
her right as beneficiary to excess of proceeds above debt to bank. 120 C. 306.
Cited. 39 CS 470.
Annotations to present section:
Cited. 229 C. 459.