§ 58-58-115. Creditors deprived of benefits of life insurance policies except in cases of fraud. - North Carolina Statutes

§58‑58‑115.  Creditors deprived of benefits of life insurancepolicies except in cases of fraud.

If a policy of insurance iseffected by any person on his own life or on another life in favor of a personother than himself, or, except in cases of transfer with intent to defraudcreditors, if a policy of life insurance is assigned or in any way made payableto any such person, the lawful beneficiary or assignee thereof, other than theinsured or the person so effecting such insurance or the executor or administratorof such insured or of the person effecting such insurance, shall be entitled toits proceeds and avails against creditors and representatives of the insuredand of the person effecting same, whether or not the right to change thebeneficiary is reserved or permitted, and whether or not the policy is madepayable to the person whose life is insured if the beneficiary or assigneeshall predecease such person: Provided, that subject to the statute oflimitations, the amount of any premiums for said insurance paid with the intentto defraud creditors, with interest thereon, shall inure to their benefit fromthe proceeds of the policy; but the company issuing the policy shall bedischarged of all liability thereon by payment of its proceeds in accordancewith its terms unless, before such payment, the company shall have writtennotice by or in behalf of the creditor, of a claim to recover for transfer madeor premiums paid with intent to defraud creditors, with specifications of theamount claimed. (1931, c. 179, s. 1; 1947, c. 721.)