500.4054 Proceeds of policy; exemption from creditors.
222 words·~1 min read·
/mi/chapter-500/500-4054A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
500.4054 Proceeds of policy; exemption from creditors.
Sec. 4054.
(1)Any authorized life insurer shall have power to hold the proceeds of any life or endowment insurance or annuity contract issued by it
(a)upon such terms and restrictions as to revocation by the insured and control by beneficiaries;
(b)with such exemptions from legal process and the claims of creditors of beneficiaries other than the insured; and
(c)upon such other terms and conditions, irrespective of the time and manner of payment of said proceeds, as shall have been agreed to in writing by such insurer and the insured or beneficiary.
(2)Such insurer shall not be required to segregate funds so held but may hold them as a part of its general corporate assets.
(3)Any life or endowment insurance or annuity contract issued by a domestic, foreign or alien insurer may provide that the proceeds thereof or payments thereunder shall not be subject to the claims of creditors of any beneficiary other than the insured or any legal process against any beneficiary other than the insured; and if the said contract so provides, the benefits accruing thereunder to such beneficiary other than the insured shall not be transferable nor subject to commutation or encumbrance, or to process.
History: 1956, Act 218, Eff. Jan. 1, 1957
Popular Name: Act 218