Chap. 167.—An ACT to amend and reenact Section 4219-b of the Code of Vir-
ginia prescribing the rights of beneficiaries, assignees and creditors under
policies of life insurance. [H 242

Approved March 9, 1948

Be it enacted by the General Assembly of Virginia:

1. That section four thousand two hundred nineteen-b of the
Code of Virginia be amended and reenacted as follows:

Section 4219-b. Rights of creditors as to policies in favor of
another 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, if a policy of life insurance is assigned or in any way
made payable to any such person, such lawful beneficiary or
assignee thereof, other than the insured or the person so effecting
such insurance or the 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 predeceases such per-
son; provided, that, subject to the statute of limitations, the amount
of any premiums for such insurance 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 interest
thereon, shall enure to the benefit of such creditors 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
beneficiary 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 repre-
sented 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,
privileges 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 enjoying 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
company 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 behalf of a creditor, of a claim to recover for trans-
fer 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 section shall be available only
to persons who are householders or’ heads of families or their
beneficiaries or their assignees. se