00                            HOUSE BILL NO. 101                                                                          
01 "An Act exempting the full value of life insurance and annuity contracts from levy to                                   
02 satisfy unsecured debt, and amending the description of earnings, income, cash, and                                     
03 other assets relating to garnishment of life insurance proceeds payable upon the death of                               
04 an insured."                                                                                                            
05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
06    * Section 1. AS 09.38.025(a) is amended to read:                                                                   
07            (a)  Except as provided in this section or AS 09.38.017, an individual is                                    
08       entitled to exemption of unmatured life insurance and annuity contracts owned by the                              
09       individual. [IF THE CONTRACTS HAVE ACCRUED DIVIDENDS AND LOAN                                                     
10       VALUES AVAILABLE TO THE INDIVIDUAL AGGREGATING MORE THAN                                                          
11       $10,000, A CREDITOR MAY OBTAIN A COURT ORDER REQUIRING THE                                                        
12       INDIVIDUAL DEBTOR TO PAY THE CREDITOR, AND AUTHORIZING THE                                                        
13       CREDITOR ON THE DEBTOR'S BEHALF TO OBTAIN PAYMENT OF, THE                                                         
14       AMOUNT OF THE ACCRUED DIVIDENDS AND LOAN VALUES IN EXCESS                                                         

01       OF $10,000 OR THE AMOUNT OF THE CREDITOR'S CLAIM, WHICHEVER IS                                                    
02       LESS.]                                                                                                            
03    * Sec. 2. AS 09.38.030(e) is amended to read:                                                                      
04            (e)  The following property, unless exempt without limitation under                                          
05       AS 09.38.015 or 09.38.017, upon receipt by and while it is in the possession of the                               
06       individual, shall be treated as earnings, income, cash, or other liquid assets under this                         
07       section:                                                                                                          
08                 (1)  benefits paid by reason of disability, illness, or unemployment;                                   
09                 (2)  money or property received for alimony or separate maintenance;                                    
10                 (3)  proceeds of insurance, a judgment, or a settlement, or other rights                                
11       accruing as a result of bodily injury of the individual or of the wrongful death or                               
12       bodily injury of another individual of whom the individual was or is a dependent;                                 
13                 (4)  proceeds or benefits paid [OR PAYABLE] on the death of an                                          
14       insured, if the individual was the spouse or a dependent of the insured; and                                      
15                 (5)  amounts paid under a stock bonus, pension, profit-sharing, annuity,                                
16       or similar plan or contract, providing benefits by reason of age, illness, disability, or                         
17       length of service.