HB1313

House Bill 1313 amends Arkansas law regarding the exemption of life insurance proceeds from claims by creditors and representatives. The bill clarifies that beneficiaries or assignees of life insurance policies are entitled to proceeds and avails, protecting these funds from garnishment, attachment, or bankruptcy claims against the insured or the beneficiary. It provides a comprehensive definition of 'proceeds and avails' to include cash surrender values, death benefits, and other policy-related payments. The bill also explicitly outlines specific exceptions where this protection does not apply, such as pledges of the policy for debt, child support liens, and claims by the Department of Human Services. Furthermore, it clarifies that, for the purpose of personal property exemptions under the Arkansas Constitution, life insurance proceeds paid to specific beneficiaries—such as spouses, children, dependents, or charitable organizations—are not considered personal property subject to standard limits.