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Bill > HB1045
TN HB1045
TN HB1045AN ACT to amend Tennessee Code Annotated, Title 56, relative to creditor claims to insurance proceeds.
summary
Introduced
02/05/2025
02/05/2025
In Committee
03/12/2025
03/12/2025
Crossed Over
03/24/2025
03/24/2025
Passed
03/25/2025
03/25/2025
Dead
Signed/Enacted/Adopted
04/04/2025
04/04/2025
Introduced Session
114th General Assembly
Bill Summary
As enacted, clarifies that the exemption from claims of creditors for the net amount payable under a policy of life insurance or under an annuity contract upon the life of a person made for the benefit of, or assigned to, the spouse, children, or dependent relatives of the person includes claims through execution, attachment, seizure, and garnishment, and that use of exempt funds does not change the classification of the funds used from exempt to nonexempt. - Amends TCA Title 56.
AI Summary
This bill amends Tennessee's insurance law to clarify protections for life insurance and annuity proceeds from creditor claims. Specifically, the bill specifies that the net amount payable under a life insurance policy or annuity contract, when designated for the benefit of a spouse, children, or dependent relatives, is exempt from creditor actions such as execution, attachment, seizure, and garnishment. The bill explicitly states that this exemption applies to obligations created after January 1, 1932, and importantly, clarifies that using these exempt funds does not change their exempt status. This means that even if the policyholder uses some of these funds, they remain protected from creditors. The purpose of the bill appears to be providing additional legal certainty and protection for life insurance and annuity proceeds intended to support family members, ensuring that these funds remain a reliable financial safety net. The bill will take effect on July 1, 2025.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Effective date(s) 07/01/2025 (on 04/04/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB1045&ga=114 |
| BillText | https://publications.tnsosfiles.com/acts/114/pub/pc0150.pdf |
| Fiscal Note - HB1045 | https://www.capitol.tn.gov/Bills/114/Fiscal/HB1045.pdf |
| BillText | https://www.capitol.tn.gov/Bills/114/Bill/HB1045.pdf |
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