April 1, 2004, Introduced by Reps. Howell, Lipsey, Bieda, Kolb, Tobocman, Gleason, Adamini, Gillard, Whitmer, LaSata and Gaffney and referred to the Committee on Judiciary.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 2209 (MCL 500.2209).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 2209. (1) It
shall be lawful for any married woman,
2 by herself, and in her
A married individual, in his or
her own
3 name or in the name of
any third person , with his assent, as
4 her as trustee, to cause to be insured for her
sole use, may
5 insure the life of her
husband a spouse or the life of any
6 other person , in any
life insurance company of any nature
7 whatever, located in
either of the states of the United States of
8 America or in Great
Britain, for any definite period, or
for the
9 term of his natural life.
; and in case of her surviving her
10 husband, or such other
person insured in her behalf, the sum or
11 net amount of the
policy of insurance due and payable by the
1 terms of the
insurance, shall be payable to her, to and for her
2 own use, free from the
claims of the representatives of her
3 husband, or of such
other person insured, or of any of his
4 creditors, but such exemption
shall not apply where the amount of
5 premium annually paid
shall exceed the sum of $300.00.
6 (2) In case of the
death of the wife before the decease of
7 her husband, or of
such other person insured, the amount of the
8 insurance may be made
payable after her death to her children,
9 for their use, and to
their guardian, if under age, or the amount
10 of the policy may be
disposed of by such married woman by a last
11 will and testament.
12 (2) A life insurance policy or the proceeds of a life
13 insurance policy payable to the individual insured or the
14 designated beneficiary is not subject to legal or equitable
15 process to satisfy the liability of a person who has a right
16 under the policy.
17 (3) The proceeds of a life insurance policy that are not
18 payable to a named beneficiary or a third person under a
19 facility-of-payment clause are not an asset of the estate of the
20 individual insured for purposes of paying claims of creditors.