Sec. 4054.
(1) Any authorized life insurer shall have power to hold the proceeds of any life or endowment insurance or annuity contract issued by it (a) upon such terms and restrictions as to revocation by the insured and control by beneficiaries; (b) with such exemptions from legal process and the claims of creditors of beneficiaries other than the insured; and (c) upon such other terms and conditions, irrespective of the time and manner of payment of said proceeds, as shall have been agreed to in writing by such insurer and the insured or beneficiary.
(2) Such insurer shall not be required to segregate funds so held but may hold them as a part of its general corporate assets.
(3) Any life or endowment insurance or annuity contract issued by a domestic, foreign or alien insurer may provide that the proceeds thereof or payments thereunder shall not be subject to the claims of creditors of any beneficiary other than the insured or any legal process against any beneficiary other than the insured; and if the said contract so provides, the benefits accruing thereunder to such beneficiary other than the insured shall not be transferable nor subject to commutation or encumbrance, or to process.
History: 1956, Act 218, Eff. Jan. 1, 1957 Popular Name: Act 218
Structure Michigan Compiled Laws
Chapter 500 - Insurance Code of 1956
Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302)
Section 500.4000 - Scope of Chapter.
Section 500.4001 - Universal Life Insurance; Definitions.
Section 500.4004 - Entire Contract.
Section 500.4008 - Life Insurance; Provisions Required; Single Premium Policies.
Section 500.4010 - Premiums; Payment; Provision Required.
Section 500.4012 - Life Insurance Policy; Provision Required.
Section 500.4014 - Entire Contract; Incontestability; Exceptions.
Section 500.4018 - Misstatement of Age or Sex; Provisions Required.
Section 500.4020 - Participation in Surplus; Provision Required.
Section 500.4022 - Policy Loans Generally.
Section 500.4024 - Nonforfeiture Benefits; Cash Surrender Values; Provision Required.
Section 500.4026 - Table of Loan Values and Options; Provision Required.
Section 500.4028 - Default in Premium Payments; Reinstatement; Provision Required.
Section 500.4030 - Settlement of Claim Upon Death of Insured; Provision Required.
Section 500.4032 - Table of Installments; Provision Required.
Section 500.4036 - Title Required.
Section 500.4037 - Universal Life Insurance Policy; Provisions Required.
Section 500.4042 - Liability Limitation; Aviation, Military or Naval Service.
Section 500.4048 - Provisions Required by Laws of Other States or Counties.
Section 500.4052 - Preliminary Term Insurance on Old Policies; Reserve.
Section 500.4054 - Proceeds of Policy; Exemption From Creditors.
Section 500.4058 - Nonforfeiture Benefits on Old Policies.
Section 500.4060 - Standard Nonforfeiture Law for Life Insurance.
Section 500.4062 - Loan Value; Deferment.
Section 500.4064 - Loan Indebtedness; Right to Compound Interest.
Section 500.4072 - Standard Nonforfeiture Law for Individual Deferred Annuities.
Section 500.4072.amended - Standard Nonforfeiture Law for Individual Deferred Annuities.