20-1132. Exemption of group life insurance
proceeds from creditors; exception
A. A policy of group life insurance or the proceeds thereof payable to the
individual insured or to the beneficiary thereunder shall not be liable, either before or
after payment, to be applied by any legal or equitable process to pay any liability of
any person having a right under the policy. The proceeds thereof, when not made payable
to a named beneficiary or to a third person pursuant to a facility-of-payment clause,
shall not constitute a part of the estate of the individual insured for the payment of
his debts.
B. This section shall not apply to group life insurance issued pursuant to article
2 of chapter 6 of this title to a creditor covering his debtors, to the extent that such
proceeds are applied to payment of the obligation for the purpose of which the insurance
was so issued.
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