H.B. 339

1

AMENDMENTS TO INSURANCE LAW
2 2000 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Lowell A. Nelson
5 AN ACT RELATING TO THE JUDICIAL CODE; CHANGING HOW INSURANCE BENEFITS
6 OR CONTRACTS ARE EXEMPTED FROM JUDICIAL PROCESS.
7 This act affects sections of Utah Code Annotated 1953 as follows:
8 AMENDS:
9 78-23-6, as enacted by Chapter 111, Laws of Utah 1981
10 78-23-7, as enacted by Chapter 111, Laws of Utah 1981
11 Be it enacted by the Legislature of the state of Utah:
12 Section 1. Section 78-23-6 is amended to read:
13 78-23-6. Property exempt from execution to extent necessary for support.
14 [Besides] In addition to the property specified in Section 78-23-5 , an individual is also
15 entitled to exemption of the following property [to the extent reasonably necessary for the support
16 of the individual and his dependents]:
17 (1) money or property received, and rights to receive money or property for alimony or
18 separate maintenance;
19 (2) proceeds or benefits paid or payable on the death of an insured, if the individual was
20 the spouse or a dependent of the insured; and
21 (3) assets held, payments, and amounts payable under a stock bonus, pension,
22 profit-sharing, annuity, or similar plan providing benefits other than by reason of illness or
23 disability.
24 Section 2. Section 78-23-7 is amended to read:
25 78-23-7. Exemption of unmatured life insurance contracts.
26 [Except as provided in this section, an] An individual is entitled to an exemption of
27 unmatured life insurance contracts owned by him. [If the contracts have accrued dividends and

28 loan values totaling more than $1,500 available to the individual, a judgment creditor may obtain
29 a court order directing the individual debtor to pay the creditor, and authorizing the creditor on the
30 debtor's behalf to obtain payment of, the amount of the accrued dividends and loan values
31 exceeding $1,500 or the amount of the creditor's claim, whichever is less.]




Legislative Review Note
as of 2-7-00 2:29 PM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel