First Substitute S.B. 50

Senator Carlene M. Walker proposes to substitute the following bill:

1 PROPERTY EXEMPT FROM EXECUTION
2 2001 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Carlene M. Walker
5 This act modifies the Judicial Code to change how life insurance benefits are exempted from
6 judicial process.
7 This act affects sections of Utah Code Annotated 1953 as follows:
8 AMENDS:
9 78-23-7, as enacted by Chapter 111, Laws of Utah 1981
10 Be it enacted by the Legislature of the state of Utah:
11 Section 1. Section 78-23-7 is amended to read:
12 78-23-7. Exemption of unmatured life insurance contracts.
13 Except as provided in this section, an individual is entitled to an exemption of unmatured
14 life insurance contracts owned by him. If the contracts have accrued dividends and loan values
15 totaling more than [$1,500] $5,000 available to the individual, a judgment creditor may obtain a
16 court order directing the individual debtor to pay the creditor, and authorizing the creditor on the
17 debtor's behalf to obtain payment of, the amount of the accrued dividends and loan values
18 exceeding [$1,500] $5,000 or the amount of the creditor's claim, whichever is less.

*SB0050S1*