2001 Legislation
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SENATE BILL NO. 1032 – Annuity contracts/benefits/exemptn


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Daily Data Tracking History

S1032................................................by JUDICIARY AND RULES
ANNUITY CONTRACTS - Amends existing law to increase the maximum total
exemption of benefits due and payable under annuity contracts.
01/25    Senate intro - 1st rdg - to printing
01/26    Rpt prt - to Jud
02/05    Rpt out - rec d/p - to 2nd rdg
02/06    2nd rdg - to 3rd rdg
02/07    3rd rdg - PASSED - 30-0-4(1 vacant)
      AYES -- Andreason, Boatright, Branch(Bartlett), Brandt, Bunderson,
      Burtenshaw, Cameron, Danielson, Darrington, Davis, Deide, Dunklin,
      Frasure, Geddes, Goedde, Hawkins, Ingram, Keough, King-Barrutia,
      Lodge, Noh, Richardson, Risch, Schroeder, Sorensen, Stegner,
      Stennett, Wheeler, Whitworth, Williams,
      NAYS -- None
      Absent and excused -- Ipsen, Lee, Sandy, Thorne
    Floor Sponsor -- King-Barrutia
    Title apvd - to House
02/08    House intro - 1st rdg - to Jud
03/20    Rpt out - rec d/p - to 2nd rdg
03/21    2nd rdg - to 3rd rdg
03/26    3rd rdg - PASSED - 66-0-4
      AYES -- Barraclough, Barrett, Bedke, Bell, Bieter, Boe, Bolz,
      Bruneel, Callister, Campbell, Chase, Clark, Collins, Crow, Cuddy,
      Deal, Denney, Ellis, Ellsworth, Eskridge, Field(13), Field(20),
      Gagner, Gould, Hadley, Hammond, Hansen, Harwood, Henbest(Farley),
      Higgins, Hornbeck, Jaquet, Jones, Kellogg, Kendell, Kunz, Lake,
      Langford, Loertscher, Mader, Marley, McKague, Meyer, Montgomery,
      Mortensen, Moss, Moyle, Pearce, Pomeroy, Raybould, Ridinger, Roberts,
      Robison, Sali, Schaefer, Sellman, Shepherd, Smith, Smylie, Stevenson,
      Stone, Tilman, Trail, Wood, Young, Mr. Speaker
      NAYS -- None
      Absent and excused -- Black, Bradford, Pischner, Wheeler
    Floor Sponsor -- Ellsworth
    Title apvd - to Senate
03/28    To enrol
    Rpt enrol - Pres signed
03/29    Sp signed - to Governor
04/02    Governor signed
         Session Law Chapter 285
         Effective: 07/01/01

Bill Text

  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                                       IN THE SENATE
                                    SENATE BILL NO. 1032
                              BY JUDICIARY AND RULES COMMITTEE
  1                                        AN ACT
  5    Be It Enacted by the Legislature of the State of Idaho:
  6        SECTION 1.  That Section 41-1836, Idaho Code, be, and the same  is  hereby
  7    amended to read as follows:
  9    RIGHTS. (1) The benefits, rights, privileges and options which under any annu-
 10    ity contract heretofore or hereafter issued are due or prospectively  due  the
 11    annuitant,  shall  not be subject to execution nor shall the annuitant be com-
 12    pelled to exercise any such rights, powers, or options, nor shall creditors be
 13    allowed to interfere with or terminate the contract, except:
 14        (a)  As to amounts paid for or as premium on any such annuity with  intent
 15        to defraud creditors, with interest thereon, and of which the creditor has
 16        given the insurer written notice at its home office prior to the making of
 17        the  payments to the annuitant out of which the creditor seeks to recover.
 18        Any such notice shall specify the amount claimed or  such  facts  as  will
 19        enable  the  insurer  to  ascertain  such amount, and shall set forth such
 20        facts as will enable the insurer to ascertain the  annuity  contract,  the
 21        annuitant and the payments sought to be avoided on the ground of fraud.
 22        (b)  The  total  exemption  of  benefits  presently due and payable to any
 23        annuitant periodically or at stated  times  under  all  annuity  contracts
 24        under  which  he  is  an annuitant, shall not at any time exceed three one
 25        thousand two hundred and fifty dollars ($351,250) per month for the length
 26        of time represented by such instalments installments, and that such  peri-
 27        odic  payments  in excess of three one thousand two hundred and fifty dol-
 28        lars ($351,250) per month shall be subject to garnishee execution  to  the
 29        same extent as are wages and salaries.
 30        (c)  If  the  total  benefits  presently  due and payable to any annuitant
 31        under all annuity contracts under which he is an annuitant, shall  at  any
 32        time  exceed  payment  at  the  rate of three one thousand two hundred and
 33        fifty dollars ($351,250) per month, then the court may  order  such  annu-
 34        itant  to  pay to a judgment creditor or apply on the judgment, in instal-
 35        ments installments, such portion of such excess benefits as to  the  court
 36        may  appear  just and proper, after due regard for the reasonable require-
 37        ments of the judgment debtor and his family, if  dependent  upon  him,  as
 38        well  as any payments required to be made by the annuitant to other credi-
 39        tors under prior court orders.
 40        (2)  If the contract so provides,  the  benefits,  rights,  privileges  or
 41    options accruing under such contract to a beneficiary or assignee shall not be
 42    transferable nor subject to commutation, and if the benefits are payable peri-
 43    odically  or  at  stated  times,  the same exemptions and exceptions contained
  1    herein for the annuitant, shall apply with  respect  to  such  beneficiary  or
  2    assignee.
  3        (3)  An  annuity  contract within the meaning of this section shall be any
  4    obligation to pay certain sums at stated times, during life or lives, or for a
  5    specified term or terms, issued for a valuable  consideration,  regardless  of
  6    whether  or  not  such sums are payable to one (1) or more persons, jointly or
  7    otherwise, but does not include payments under  life  insurance  contracts  at
  8    stated time during life or lives, or for a specified term or terms.

Statement of Purpose / Fiscal Impact

                    STATEMENT OF PURPOSE
                            RS 10715
The original limit on exemption of benefits of $350.00 was set in
1961.  It has never been indexed or changed since.  The bill brings
the exemption figure to a more realistic amount, in line with the
original purpose of the statute.  Courts were routinely overriding
the $350 limit under (1)(c) of the statute because the limit was
too low.

                          FISCAL NOTE
This bill should have no effect on revenues or expenditures.

CONTACT:  Robert L. Aldridge
                    1209 North Eighth Street
                    Boise, Idaho 83702-4297
                    Telephone: office: (208) 336-9880
          STATEMENT OF PURPOSE/FISCAL NOTE           S1032