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

(b)  When the terms of any life or endowmentpolicy or annuity contract require that the proceeds thereof be retained by theinsurer upon the death of the insured, or other maturity of the policy orcontract, for payment to any beneficiary other than the insured in accordancewith a settlement plan selected by the insured, the beneficiary shall have noright or power, nor shall the beneficiary be permitted by any insurer, tocommute, encumber, assign, or otherwise anticipate the beneficiary's interestsunder the plan if the right or power is expressly denied the beneficiary by theterms of the contract or policy.  If the beneficiary under the settlement planis or was the spouse of the insured, or a child, parent or other persondependent upon the insured, the beneficiary's interests thereunder, in anycase, shall be exempt from execution, attachment, garnishment, or other processfor the beneficiary's debts or liabilities incurred after December 31, 1955.

(c)  This section does not apply to group lifeinsurance. [L 1987, c 347, pt of §2]