1132

(1) The proceeds and avails of disability insurance policies and of provisions providing benefits for disability which are supplemental to life insurance or annuity contracts, whether heretofore or hereafter effected, shall be exempt from all liability and legal process for any debt of the insured, and for any debt of the beneficiary existing at the time the proceeds are made available for his/her use, except as follows:\n(a) The exemption shall not apply with respect to the excess of periodic benefits payable under all policies to the insured because of disability, over the sum of eight hundred dollars ($800) [per month].\n(b) The exemption shall not apply to periodic payments payable to the insured, with respect to necessaries contracted for by the insured during the period of his disability, if the complaint contains a statement to that effect.\nThe exceptions stated in clauses (a) and (b) of this subsection shall not apply as to lump sum benefits for dismemberment, or to benefits payable, on account of the insured’s accidental death, to a beneficiary designated in the policy, other than the insured’s estate.\n(2) This section shall not be deemed to prevent payment by the

fits payable, on account of the insured’s accidental death, to a beneficiary designated in the policy, other than the insured’s estate.\n(2) This section shall not be deemed to prevent payment by the insurer of proceeds to a creditor of the insured pursuant to express provision in the policy or as authorized by a written assignment or consent of the insured as permitted by the terms of the policy and filed with the insurer.\nHistory —Ins. Code § 11.320; June 20, 2007, No. 49, § 1.