38.2-3122 - Proceeds of policies payable to others free of claims against insured. - Virginia Statutes

§ 38.2-3122. Proceeds of policies payable to others free of claims againstinsured.

The assignee or lawful beneficiary of an insurance policy shall be entitledto its proceeds against any claims of the creditors or representatives of theinsured or the person effecting the policy, except in cases of transfer withintent to defraud creditors, subject to the following conditions:

1. The policy shall have been effected by a person on his own life or onanother life, in favor of a person other than himself;

2. The assignee of the policy, or the payee, if the policy is otherwise madepayable to another, shall not be the insured, nor the person effecting thepolicy, nor the executors or administrators;

3. The right to change the beneficiary may or may not have been reserved orpermitted;

4. The policy may be payable to the person whose life is insured if thebeneficiary or assignee predeceases the insured; and

5. Subject to the statute of limitations, the amount of any premiums for suchpolicy paid with the intent to defraud creditors, or paid under suchcircumstances as to be void under § 55-81, with the interest thereon, shallbe to the benefit of the creditors from the proceeds of the policy.

(Code 1950, § 38-119; 1952, c. 317, § 38.1-448; 1986, c. 562.)