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INSURANCE-RIGHTS OF CREDITORS TO PROCEEDS OF INSURANCE POLICY ON LIFE OF INSOLVENT DEBTOR

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Abstract

With the ever increasing popularity of life insurance investments it becomes of deep concern to know the extent of a creditor's claim against the proceeds of such an investment. Where the estate of the insured is the beneficiary of the policy at the time of his death, there is no doubt that his creditors may satisfy their claims out of the proceeds. The rights of creditors to the proceeds in cases where, during insolvency of the debtor, a policy on his life has been assigned by him to his wife, or premiums have been paid by him on a policy naming her as beneficiary, are not so well-defined.

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