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304.14-300 Exemptions of proceeds, life insurance.
(1)
(2)
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 principal
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.
For the purposes of subsection (1) of this section, 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.
Effective:June 18, 1970
History: Created 1970 Ky. Acts ch. 301, subtit. 14, sec. 30, effective June 18,
1970.
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