Current Status Introducing Body:Senate Bill Number:545 Ratification Number:158 Act Number:89 Primary Sponsor:Saleeby Type of Legislation:GB Subject:Life insurance policies Companion Bill Number:4060 Date Bill Passed both Bodies:19930527 Computer Document Number:BBM/10194JM.93 Governor's Action:S Date of Governor's Action:19930614 Introduced Date:19930316 Last History Body:------ Last History Date:19930614 Last History Type:Act No. 89 Scope of Legislation:Statewide All Sponsors:Saleeby Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
---- ------ ------------ ------------------------------ --- ------------
545 ------ 19930614 Act No. 89
545 ------ 19930614 Signed by Governor
545 ------ 19930610 Ratified R 158
545 House 19930527 Read third time, enrolled for
ratification
545 House 19930526 Read second time
545 House 19930519 Committee Report: Favorable 26
545 House 19930420 Introduced, read first time, 26
referred to Committee
545 Senate 19930416 Read third time, sent to House
545 Senate 19930415 Read second time, unanimous
consent for third reading on
Friday, April 16, 1993
545 Senate 19930414 Recalled from Committee, 02
placed on Calendar
545 Senate 19930316 Introduced, read first time, 02
referred to Committee
View additional legislative information at the LPITS web site.
(A89, R158, S545)
AN ACT TO AMEND SECTION 38-63-40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INDIVIDUAL LIFE INSURANCE AND THE PROVISIONS THAT A LIFE INSURANCE POLICY FOR THE INSURED'S SPOUSE, CHILDREN, OR DEPENDENTS IS NOT SUBJECT TO CLAIMS OF THE INSURED'S CREDITORS, SO AS TO DELETE THE PROVISIONS OF THE SECTION AND TO PROVIDE, AMONG OTHER THINGS, THAT PROCEEDS AND CASH SURRENDER VALUES OF LIFE INSURANCE PAYABLE TO A BENEFICIARY OTHER THAN THE INSURED'S ESTATE IN WHICH SUCH PROCEEDS AND CASH SURRENDER VALUES ARE EXPRESSED TO BE FOR THE PRIMARY BENEFIT OF THE INSURED'S SPOUSE, CHILDREN, OR DEPENDENTS ARE EXEMPT FROM CREDITORS WHETHER OR NOT THE RIGHT TO CHANGE THE BENEFICIARY IS RESERVED AND WHETHER OR NOT THE POLICY IS PAYABLE TO THE INSURED IF THE BENEFICIARY DIES FIRST EXCEPT UNDER CERTAIN CONDITIONS, AND THAT BENEFITS OF ACCIDENT AND DISABILITY CONTRACTS ARE EXEMPT FROM CLAIMS OF THE CREDITORS OF THE INSURED.
Be it enacted by the General Assembly of the State of South Carolina:
Exemption from claims of creditors; exceptions; etc.
SECTION 1. Section 38-63-40 of the 1976 Code is amended to read:
"Section 38-63-40. (A) Proceeds and cash surrender values of life insurance payable to a beneficiary other than the insured's estate in which such proceeds and cash surrender values are expressed to be for the primary benefit of the insured's spouse, children, or dependents are exempt from creditors of the insured whether or not the right to change the beneficiary is reserved and whether or not the policy is payable to the insured if the beneficiary dies first except:
(1) if the insured has filed a petition in bankruptcy within two years of purchasing the insurance, such proceeds or cash surrender are only exempt as permitted by Section 15-41-30; or
(2) the amount of premiums paid and interest thereon with intent to defraud creditors;
(3) a creditor possessing a valid assignment from the policyowner may recover from either the cash surrender value or the proceeds of the life insurance policy the amount secured by the assignment with interest.
(B) Proceeds of life insurance or annuity contracts, by agreement, may be held by the insurer exempt from claims of the beneficiary's creditors. (C) Proceeds of group life insurance contracts are exempt from claims of the creditors of the insured.
(D) Benefits of accident and disability contracts are exempt from claims of the creditors of the insured."
Time effective
SECTION 2. This act takes effect upon approval by the Governor.
Approved the 14th day of June, 1993.