Legislature Passes House Bill 101 to Better Protect Annuities and Life Insurance from Garnishment – Sen. Coghill in Unusual Position of Voting for his Bill in Both House and Senate

Juneau – HB 101 increases to $500,000 the $10,000 cap on annuities and life insurance, allowing Alaskan families to plan for their retirement without the threat of garnishment.

While public retirement programs have exemption without limitation, non-government workers and small business owners rely on life insurance and annuity contracts to supplement their retirements. This bill ensures that life insurance and annuities have limited liability to satisfy debt created after the effective date of the legislation.

“With the uncertain fiscal situation we as a country find ourselves in, most of us are not planning on social security as our only form of retirement or to leave to our survivors,” Coghill said. “This bill allows Alaskans to better plan for their retirement, and for the provision of their loved ones, by adding protection to life insurance and annuities.”

When HB 101 was calendared for a vote in the Senate on April 6th of this year, Senator Coghill found himself in an unusual position of being able to vote in both the House and Senate to pass HB 101, a bill he introduced last year to provide a higher level of protection against garnishment for life insurance and annuities. The bill passed the House unanimously on April 3, 2009.

Today the House concurred in amendments made to the bill in the Senate, and it now awaits transmittal to the Governor for his signature.