House of Representatives

HB 2516

life insurance; cash value; creditors

Sponsors: Representative Carpenter

 

DP

Committee on Financial Institutions and Insurance

X

Caucus and COW

 

 

As Passed the House

 

HB 2516 increases the cash value exemption limit for life insurance policies to $50,000. 

 

History

In 1963, a cash value of up to $2,000 per dependent of a life insurance policy was exempt from claims and demands of all creditors in the case of bankruptcy or any proceedings before an Arizona court.  In 1992, the cash value amount was changed from $2,000 to $25,000.  Currently the law protects the insured up to $25,000 in cash values in life insurance policies.  

 

Provisions

·                      Changes the cash value exemption limit for life insurance policies from $25,000 to $50,000.

·                      Clarifies existing language.

 

HB 2516 passed the Financial Institutions and Insurance Committee unamended.

 

 

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45th Legislature                                                                                                                                

First Regular Session                                   2                                                       February 9, 2001

 

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