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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
|||| 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
2 RELATING TO ANNUITY CONTRACTS; AMENDING SECTION 41-1836, IDAHO CODE, TO
3 INCREASE THE MAXIMUM TOTAL EXEMPTION OF BENEFITS DUE AND PAYABLE UNDER
4 ANNUITY CONTRACTS AND TO MAKE TECHNICAL CORRECTIONS.
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:
8 41-1836. EXEMPTION OF PROCEEDS -- ANNUITY CONTRACTS -- ASSIGNABILITY OF
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
2
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
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