§431:10-232 - Exemption of proceeds; life, endowment and annuity.

§431:10-232 Exemption of proceeds; life,
endowment and annuity. (a) All proceeds payable because of the death of
the insured and the aggregate net cash value of any or all life and endowment
policies and annuity contracts payable to a spouse of the insured, or to a
child, parent or other person dependent upon the insured, whether the power to
change the beneficiary is reserved to the insured or not, and whether the
insured or the insured's estate is a contingent beneficiary or not, shall be
exempt from execution, attachment, garnishment, or other process, for the debts
or liabilities of the insured incurred subsequent to May 19, 1939, except as to
premiums paid in fraud of creditors within the period limited by law for the
recovery of such payments.

(b) When the terms of any life or endowment
policy or annuity contract require that the proceeds thereof be retained by the
insurer upon the death of the insured, or other maturity of the policy or
contract, for payment to any beneficiary other than the insured in accordance
with a settlement plan selected by the insured, the beneficiary shall have no
right or power, nor shall the beneficiary be permitted by any insurer, to
commute, encumber, assign, or otherwise anticipate the beneficiary's interests
under the plan if the right or power is expressly denied the beneficiary by the
terms of the contract or policy. If the beneficiary under the settlement plan
is or was the spouse of the insured, or a child, parent or other person
dependent upon the insured, the beneficiary's interests thereunder, in any
case, shall be exempt from execution, attachment, garnishment, or other process
for the beneficiary's debts or liabilities incurred after December 31, 1955.