§ 27-4-11 - Rights of beneficiaries to proceeds of policy as against creditors – Premiums paid in fraud of creditors.
SECTION 27-4-11
§ 27-4-11 Rights of beneficiaries toproceeds of policy as against creditors – Premiums paid in fraud ofcreditors. – If a policy of insurance is effected by any person on that person's own life oron another life in favor of a person other than himself or herself, or, exceptin cases of transfer with intent to defraud creditors, if a policy of lifeinsurance is assigned or in any way made payable to any person, the lawfulbeneficiary or assignee of the policy, other than the insured or the personeffecting that insurance or the executors or administrators of that insured orthe person effecting that insurance, shall be entitled to its proceeds andavails against the creditors and representatives of the insured and of theperson effecting the insurance, whether or not the right to change thebeneficiary is reserved or permitted, and whether or not the policy is madepayable to the person whose life is insured if the beneficiary or assigneeshall predecease that person; provided, that, subject to the statute oflimitations, the amount of any premiums for that insurance paid with intent todefraud creditors, with interest on it, shall inure to their benefit from theproceeds of the policy. The company issuing the policy shall be discharged ofall liability on the policy by payment of its proceeds in accordance with itsterms, unless before that payment the company shall have written notice, by orin behalf of a creditor, of a claim to recover for a transfer made or premiumspaid with intent to defraud creditors, with a specification of the amountclaimed.