Phoenix, Arizona
life insurance; cash value;
creditors
Increases
the cash value exemption limit for life insurance policies from $25,000 to
$50,000.
Background
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
increased from $2,000 to $25,000. Currently the law protects the insured up to
$25,000 in cash values for life insurance policies.
S.B.
2516 increases the cash value exemption limit for life insurance policies from
$25,000 to $50,000.
There
is no fiscal impact associated with H.B. 2516 according to the Joint
Legislative Budget Committee staff.
Provisions
1. Increases the cash value exemption limit for life insurance policies from $25,000 to $50,000.
2. Clarifies existing language.
3. Provides for a general effective date.
House
Action
FII 3/1/01 59-0-1-0
Prepared by Senate Staff
March 13, 2001