Bills · 2023-2024 Regular Session
Relating to: increasing the maximum value of certain property exempt from execution of judgment.
Creditor Debt and debtors Insurance — Life and accident Judgment Justice department of
- Introduced, stopped here
- Passes Assembly, not reached
- Passes Senate, not reached
- Governor signs, not reached
- Law, not reached
Unfamiliar terms? Glossary
What this bill does
Plain-language analysis by the nonpartisan Legislative Reference Bureau
Under current law, a debtor's interest in or right to receive certain property is
exempt from execution, meaning that it is free from any lien obtained by judicial
proceedings and not liable to seizure or sale on execution or on any provisional or
final process issued from any court or any proceedings in aid of court process.
Current law exempts from creditor claims any unmatured life insurance or annuity
contract that is owned by a debtor and that insures the debtor, his or her dependent,
or a person on whom the debtor is dependent, other than a credit life insurance
contract. Current law also exempts from creditor claims a maximum of $150,000 of
the debtor's aggregate interest in any accrued dividends, interest, or loan value of
all unmatured life insurance or annuity contracts owned by the debtor that insure
the debtor, his or her dependent, or a person on whom the debtor is dependent. This
bill increases the maximum value of the aggregate interest to $250,000.