KRS 304.14-330: Exemption of proceeds, annuity contracts -- Assignability of rights.

(1) The benefits, rights, privileges and options which under any annuity contract

heretofore or hereafter issued are due or prospectively due the annuitant, shall not

be subject to execution nor shall the annuitant be compelled to exercise any such

rights, po wers, or options, nor shall creditors be allowed to interfere with or

terminate the contract, except:

(a) As to amounts paid for or as premium on any such annuity with intent to

defraud creditors, with interest thereon, and of which the creditor has given

the insurer written notice at its principal office prior to the making of the

payment to the annuitant out of which the creditor seeks to recover. Any such

notice shall specify the amount claimed or such facts as will enable the insurer

to ascertain such a mount, and shall set forth such facts as will enable the

insurer to ascertain the annuity contract, the annuitant and the payment sought

to be avoided on the ground of fraud.

(b) The total exemption of benefits presently due and payable to any annuitant

periodically or at stated times under all annuity contracts under which he is an

annuitant, shall not at any time exceed $350 per month for the length of time

represented by such installments, and that such periodic payments in excess of

$350 per month shall be subject to garnishee execution to the same extent as

are wages and salaries.

(c) If the total benefits presently due and payable to any annuitant under all

annuity contracts under which he is an annuitant, shall at any time exceed

payment at the rate o f $350 per month, then the court may order such

annuitant to pay to a judgment creditor or apply on the judgment, in

installments, such portion of such excess benefits as to the court may appear

just and proper, after due regard for the reasonable requirem ents of the

judgment debtor and his family, if dependent upon him, as well as any

payments required to be made by the annuitant to other creditors under prior

court orders.

(2) If the contract so provides, the benefits, rights, privileges or options accrui ng under

such contract to a beneficiary or assignee shall not be transferable nor subject to

commutation, and if the benefits are payable periodically or at stated times, the

same exemptions and exceptions contained herein for the annuitant, shall apply with

respect to such beneficiary or assignee.

(3) An annuity contract within the meaning of this section shall be any obligation to pay

sums at stated times, during life or lives, or for a specified term or terms, issued for

a valuable consideration, regardless of whether or not such sums are payable to one

(1) or more persons, jointly or otherwise, but does not include payments under life

insurance contracts at stated times during life or lives, or for a specified term or

terms.