2005 Idaho Code - 41-1833 — EXEMPTION OF PROCEEDS -- LIFE INSURANCE

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 18
                            THE INSURANCE CONTRACT
    41-1833.  EXEMPTION OF PROCEEDS -- LIFE INSURANCE. (1) If a policy of
insurance, whether heretofore or hereafter issued, is effected by any person
on his own life, or on another life, in favor of a person other than himself,
or, except in cases of transfer with intent to defraud creditors, if a policy
of life insurance is assigned or in any way made payable to any such person,
the lawful beneficiary or assignee thereof, other than the insured or the
person so effecting such insurance or executors or administrators of such
insured or the person so effecting such insurance, shall be entitled to its
proceeds and avails against the creditors and representatives of the insured
and of the person effecting the same, whether or not the right to change the
beneficiary is reserved or permitted, and whether or not the policy is made
payable to the person whose life is insured if the beneficiary or assignee
shall predecease such person, and such proceeds and avails shall be exempt
from all liability for any debt of the beneficiary existing at the time the
policy is made available for his use: provided, that subject to the statute of
limitations, the amount of any premiums for such insurance paid with intent to
defraud creditors, with interest thereon, shall inure to their benefit from
the proceeds of the policy; but the insurer issuing the policy shall be
discharged of all liability thereon by payment of its proceeds in accordance
with its terms, unless, before such payment, the insurer shall have received
written notice at its home office, by or in behalf of a creditor, of a claim
to recover for transfer made or premiums paid with intent to defraud
creditors, with specification of the amount claimed.
    (2)  For the purposes of subsection (1) above, a policy shall also be
deemed to be payable to a person other than the insured if and to the extent
that a facility-of-payment clause or similar clause in the policy permits the
insurer to discharge its obligation after the death of the individual insured
by paying the death benefits to a person as permitted by such clause.
    (3)  This section shall not be affected by the terms of section 15-6-107,
Idaho Code.