Bill
Bill > SB1106
TN SB1106
TN SB1106AN 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
Crossed Over
Passed
04/04/2025
04/04/2025
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 law regarding the protection of life insurance and annuity contract proceeds from creditors' claims. Specifically, the legislation clarifies that the net amount payable from a life insurance policy or annuity contract, when made for the benefit of a person's spouse, children, or dependent relatives, is exempt from creditor claims such as execution, attachment, seizure, and garnishment. The bill explicitly states that this exemption applies to obligations created after January 1, 1932, and importantly, specifies that if the policyholder retains the right to change the beneficiary, this does not invalidate the exemption. Additionally, the bill reinforces that if these exempt funds are used for any purpose, they maintain their exempt status and do not become non-exempt. The legislation will take effect on July 1, 2025, and is designed to provide stronger financial protections for families by safeguarding life insurance and annuity proceeds from creditors' attempts to collect debts.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Comp. became Pub. Ch. 150 (on 04/04/2025)
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB1106&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/SB1106.pdf |
Loading...