§ 27-1-12-29 — Group life insurance; exemption of proceeds from legal process

(a) As used in this section, "premium"
includes any deposit or contribution.
(b) Except as provided in subsection (c), no policy of group
insurance nor the proceeds thereof, when paid to any employee or
employees, shall be liable to attachment, garnishment, or other process,
or to be seized, taken, appropriated, or applied to any legal or equitable
process or operation of law, to pay any debt or liability of such
employee, or the employee's beneficiary, or any other person who may
have a right under the policy, either before or after payment, nor shall
the proceeds thereof, where not payable to a named beneficiary,
constitute a part of the estate of the employee for the payment of the
employee's debts.
(c) A premium paid for an individual life insurance policy that
names as a beneficiary, or is legally assigned to, a spouse, child, or
relative who is dependent upon the policy owner is not exempt from the
claims of the creditors of the policy owner if the premium is paid:
(1) not more than one (1) year before the date of the filing of a
voluntary or involuntary bankruptcy petition by; or
(2) to defraud the creditors of;
the policy owner.
(d) The insurer issuing the policy is discharged from all liability by
payment of the proceeds and avails of the policy (as defined in section
14(b) of this chapter) in accordance with the terms of the policy unless,
before payment, the insurer has received at the insurer's home office,
written notice by or on behalf of a creditor of the policy owner that
specifies the amount claimed against the policy owner.
Formerly: Acts 1935, c.162, s.168. As amended by
P.L.253-1995, SEC.2; P.L.136-2018, SEC.159.