Chap. 304.—An ACT to amend the Code of Virginia by adding a new section
numbered 4219-b, prescribing the rights of beneficiaries, assignees and creditors
under policies of life insurance. [H B 323]

Approved March 26, 1946

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia be amended by adding a new sec-
tion, numbered forty-two hundred nineteen-b, as follows:

Section 4219-b. Rights of creditors as to policies in favor of an-
other person and policies assigned.—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, 1f a policy of life in-
surance is assigned or in any way made payable to any such person, such
lawful beneficiary or assignee thereof, other than the insured or the per-
son so effecting such insurance, or his executors or administrators, shall
be entitled to its proceeds and avails against the creditors and representa-
tives 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 predeceases such person; provided, that, subject to
the statute of limitations, the amount of any premiums for such insur-
ance paid with intent to defraud creditors, or paid under such circum-
stances as to be void under Code section five thousand one hundred
eighty-five with interest thereon, shall enure to the benefit of such credi-
tors from the proceeds of the policy.

But in the case of policies under the terms of which the insured or
the person effecting such insurance has the right to change the bene-
ficiary or assignee, the total amount of such insurance entitled to the
protection afforded by this section shall not exceed ten thousand dollars
and when the amount of such insurance represented by two or more
policies exceeds such limit, the protection afforded by this section shall
be allowed as to each of such policies pro rata in accordance with the
respective annual premiums involved.

Since the purpose of this section is to confer additional rights,

rivileges and benefits upon beneficiaries and assignees of policies of life
insurance, it is specifically provided that no such beneficiary or assignee
shall be divested or deprived of or prohibited from exercising or enjoy-
ing any right, privilege or benefit which he would have or could exercise
or enjoy had this section not been enacted.

Notwithstanding the foregoing provisions of this section any com-
pany issuing any policy of insurance shall be discharged of all liability
thereon by payment of its proceeds in accordance with its terms, unless
before such payment the company shall have written notice, by or in be-
half of a creditor, of a claim to recover for transfer made or premiums
paid with intent to defraud creditors, or paid under such circumstances
as to be void under Code section five thousand one hundred eighty-five,
with specifications of the amount claimed.

The benefits conferred under this act shall be available only to per-
sons who are householders or heads of families.