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304.14-330 Exemption of proceeds, annuity contracts -- Assignability of
rights.
(1)
(2)
(3)
The benefits, rights, privileges and options which under any annuity contract
heretofore or hereafter issued are due or prospectively due the annuitant, shall
not be subject to execution nor shall the annuitant be compelled to exercise
any such rights, powers, or options, nor shall creditors be allowed to interfere
with or terminate the contract, except:
(a) As to amounts paid for or as premium on any such annuity with intent to
defraud creditors, with interest thereon, and of which the creditor has
given the insurer written notice at its principal office prior to the making of
the payment to the annuitant out of which the creditor seeks to recover.
Any such notice shall specify the amount claimed or such facts as will
enable the insurer to ascertain such amount, and shall set forth such facts
as will enable the insurer to ascertain the annuity contract, the annuitant
and the payment sought to be avoided on the ground of fraud.
(b) The total exemption of benefits presently due and payable to any
annuitant periodically or at stated times under all annuity contracts under
which he is an annuitant, shall not at any time exceed $350 per month for
the length of time represented by such installments, and that such
periodic payments in excess of $350 per month shall be subject to
garnishee execution to the same extent as are wages and salaries.
(c) If the total benefits presently due and payable to any annuitant under all
annuity contracts under which he is an annuitant, shall at any time exceed
payment at the rate of $350 per month, then the court may order such
annuitant to pay to a judgment creditor or apply on the judgment, in
installments, such portion of such excess benefits as to the court may
appear just and proper, after due regard for the reasonable requirements
of the judgment debtor and his family, if dependent upon him, as well as
any payments required to be made by the annuitant to other creditors
under prior court orders.
If the contract so provides, the benefits, rights, privileges or options accruing
under such contract to a beneficiary or assignee shall not be transferable nor
subject to commutation, and if the benefits are payable periodically or at stated
times, the same exemptions and exceptions contained herein for the annuitant,
shall apply with respect to such beneficiary or assignee.
An annuity contract within the meaning of this section shall be any obligation to
pay sums at stated times, during life or lives, or for a specified term or terms,
issued for a valuable consideration, regardless of whether or not such sums
are payable to one (1) or more persons, jointly or otherwise, but does not
include payments under life insurance contracts at stated times during life or
lives, or for a specified term or terms.
Effective:June 18, 1970
History: Created 1970 Ky. Acts ch. 301, subtit. 14, sec. 33, effective June 18,
1970.
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