S*1084(Rat #0313, Act #0305 of 1988)  General Bill, By 
Senate Banking and Insurance

Similar(H 3478)
 A Bill to amend Section 38-63-40, Code of Laws of South Carolina, 1976,
 relating to the protection of an individual life insurance policy for a
 married individual and children from claims of creditors and to amend Section
 38-65-90, relating to the protection of a group life insurance policy for a
 married individual and children from claims of creditors, so as to increase
 the maximum amount of life insurance covered by these Sections from
 twenty-five thousand to fifty thousand dollars and to remove the protection
 provided for a married individual and children in these Sections when the
 policy was obtained with the intent to defraud creditors or the creditor or
 representative possesses a valid assignment of the cash surrender value of the
 policy from the policyholder on a separate form.

   01/26/88  Senate Introduced, read first time, placed on calendar
                     without reference SJ-10
   01/28/88  Senate Read second time SJ-33
   01/28/88  Senate Ordered to third reading with notice of
                     amendments SJ-33
   02/02/88  Senate Read third time and sent to House SJ-18
   02/03/88  House  Introduced, read first time, placed on calendar
                     without reference HJ-907
   02/10/88  House  Debate adjourned until Thursday, February 11,
                     1988 HJ-1091
   02/11/88  House  Read second time HJ-1109
   02/11/88  House  Unanimous consent for third reading on next
                     legislative day HJ-1112
   02/12/88  House  Read third time and enrolled HJ-1167
   02/18/88         Ratified R 313
   02/24/88         Signed By Governor
   02/24/88         Effective date 02/24/88
   02/24/88         Act No. 305
   03/08/88         Copies available

AN ACT TO AMEND SECTION 38-63-40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PROTECTION OF AN INDIVIDUAL LIFE INSURANCE POLICY FOR A MARRIED INDIVIDUAL AND CHILDREN FROM CLAIMS OF CREDITORS AND TO AMEND SECTION 38-65-90, RELATING TO THE PROTECTION OF A GROUP LIFE INSURANCE POLICY FOR A MARRIED INDIVIDUAL AND CHILDREN FROM CLAIMS OF CREDITORS, SO AS TO INCREASE THE MAXIMUM AMOUNT OF LIFE INSURANCE COVERED BY THESE SECTIONS FROM TWENTY-FIVE THOUSAND TO FIFTY THOUSAND DOLLARS AND TO REMOVE THE PROTECTION PROVIDED FOR A MARRIED INDIVIDUAL AND CHILDREN IN THESE SECTIONS WHEN THE POLICY WAS OBTAINED WITH THE INTENT TO DEFRAUD CREDITORS OR THE CREDITOR OR REPRESENTATIVE POSSESSES A VALID ASSIGNMENT OF THE CASH SURRENDER VALUE OF THE POLICY FROM THE POLICYHOLDER ON A SEPARATE FORM.

Be it enacted by the General Assembly of the State of South Carolina:

Policy for married individual, children;

maximum protection for creditors, exceptions

SECTION 1. Section 38-63-40 of the 1976 Code is amended to read:

"Section 38-63-40. The proceeds and cash surrender value of life insurance in the aggregate amount of not more than fifty thousand dollars upon the life of an individual, which has already been or may be taken out, in which it is expressed to be for the primary benefit of the insured's spouse, children, or dependents inure to the use and benefit of the individual or individuals for whose use and benefit it is expressed to be taken out, and the sum or net amount of the insurance becoming due and payable by the terms of the policy is payable to the individual or individuals as stated in this section, free and discharged from the claims of the representatives of the insured or of any of the insured's creditors or a person claiming by, through, or under him or them or any of them unless:

(1) the policy was obtained with the intent to defraud creditors; or

(2) the creditor or representative possesses a valid assignment of the cash surrender value of the policy from the policyholder on a separate form.

In these two instances, the creditor may recover from either the cash surrender value or the proceeds of the life insurance policy of the amount secured by the assignment."

Policy for married individual, children; maximum protection for creditors, exceptions

SECTION 2. Section 38-65-90 of the 1976 Code is amended to read:

"Section 38-65-go. The proceeds and cash surrender value of life insurance in the aggregate amount of not more than fifty thousand dollars upon the life of an individual, which has already been or may be taken out, in which it is expressed to be for the primary benefit of the insured's spouse, children, or dependents inure to the use and benefit of the individual or individuals for whose use and benefit it is expressed to be taken out, and the sum or net amount of the insurance becoming due and payable by the terms of the policy is payable to the individual or individuals as stated in this section, free and discharged from the claims of the representatives of the insured or of any of the insured's creditors or a person claiming by, through, or under him or them or any of them unless:

(1) the policy was obtained with the intent to defraud creditors; or

(2) the creditor or representative possesses a valid assignment of the cash surrender value of the policy from the policyholder on a separate form. In these two instances, the creditor may recover from either the cash surrender value or the proceeds of the life insurance policy of the amount secured by the assignment."

Time effective

SECTION 3. This act takes effect upon approval by the Governor.