§33-6-27. Life insurance proceeds exempt from creditors.
(a) If a policy of insurance, whether heretofore or
hereafter issued, is effected by any person on his own life or on
another life, in favor of a person other than himself, or, except
in cases of transfer with intent to defraud creditors, if a
policy of life insurance is assigned or in any way made payable
to any such person, the lawful beneficiary or assignee thereof,
other than the insured or the person so effecting such insurance
or executors or administrators of such insured or the person so
effecting such insurance, shall be entitled to its proceeds and
avails against the creditors and representatives of the insured
and of the person effecting the same, whether or not the right to
change the beneficiary is reserved or permitted, and whether or
not the policy is made payable to the person whose life is
insured if the beneficiary or assignee shall predecease such
person.
(b) Subject to the statute of limitations, the amount of any
premiums for such insurance paid in fraud of creditors, with
interest thereon, shall inure to their benefit from the proceeds
of the policy, but the insurer issuing the policy shall be
discharged of all liability thereon by payment of the proceeds in
accordance with its terms, unless before such payment the insurer
received written notice by or in behalf of some creditor, with
specification of the amount claimed, claiming to recover for
certain premiums paid in fraud of creditors.
(c) For the purposes of paragraph (a), above, a policy shall
also be deemed to be payable to a person other than the insured if and to the extent that a facility-of-payment clause or similar
clause in the policy permits the insurer to discharge its
obligations after the death of the individual insured by paying
the death benefits to a person as permitted by such clause.