Sec. 38a-454. (Formerly Sec. 38-162). Proceeds of insurance policies and annuities may be held in trust.
Sec. 38a-454. (Formerly Sec. 38-162). Proceeds of insurance policies and annuities may be held in trust. Any domestic life insurance company shall have power
to hold the proceeds of any policy issued by it under a trust or other agreement upon
such terms and restrictions as to revocation by the policyholder and control by beneficiaries and with such exemptions from the claims of creditors of beneficiaries other than
the policyholder as have been agreed to in writing by such company and the policyholder.
Such insurance company shall not be required to segregate funds so held but may hold
them as a part of its general corporate assets. Similar terms, restrictions and exemptions,
for the benefit of any payee other than the purchaser, may be included by any such
company in any annuity contract or any agreement issued in connection therewith or
supplemental thereto. When any foreign or alien life insurance company doing business
in Connecticut holds the proceeds of a life insurance policy or annuity contract under
any trust or other agreement consistent with its charter or the laws of its domicile, beneficiaries of such trust or other agreement shall be entitled to exemptions from claims of
creditors as hereinbefore provided to the same extent as if the trust or other agreement
were entered into with a domestic life insurance company.
(1949 Rev., S. 6151; P.A. 90-243, S. 66.)
History: P.A. 90-243 substituted "foreign" for "nonresident" and "alien" for "foreign" insurance companies; Sec. 38-162 transferred to Sec. 38a-454 in 1991.