CHAPTER 5. PROVISIONS CONCERNING ALIENATION OF BENEFITS

IC 27-2-5
    Chapter 5. Provisions Concerning Alienation of Benefits

IC 27-2-5-1
Spendthrift laws; exemption from judicial process
    Sec. 1. (a) As used in this section, "premium" includes any depositor contribution.
    (b) No person entitled to receive benefits under a life insurance orlife annuity contract, or under a written agreement supplementalthereto, issued by domestic life insurance company, shall bepermitted to commute, anticipate, encumber, alienate, or assign suchbenefits, if the right to do so is expressly prohibited or withheld bya provision contained in such contract or supplemental agreement.And if such contract, policy, or supplemental agreement so provides,such benefits, except when payable to the person who provided theconsideration for such contract, shall not be subject to such persons'debts, contracts, or engagements, nor to any judicial process to levyupon or attach the same for payment thereof.
    (c) A premium paid for an individual life insurance policy thatnames as a beneficiary, or is legally assigned to, a spouse, child, orrelative who is dependent upon the policy owner is not exempt fromthe claims of the creditors of the policy owner if the premium is paid:
        (1) not more than one (1) year before the date of the filing of avoluntary or involuntary petition by; or
        (2) to defraud the creditors of;
the policy owner.
    (d) The insurer issuing the policy is discharged from all liabilityby payment of the proceeds and avails of the policy (as defined inIC 27-1-12-14(b)) in accordance with the terms of the policy unless,before payment, the insurer has received at the insurer's home office,written notice by or on behalf of a creditor of the policy owner thatspecifies the amount claimed against the policy owner.
(Formerly: Acts 1931, c.20, s.1.) As amended by P.L.253-1995,SEC.3.