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    Subdivision 1. Proceeds of life policy or annuity, who entitled to. When any insurance is
effected in favor of another, the beneficiary shall be entitled to its proceeds against the creditors
and representatives of the person effecting the same. All premiums paid for insurance in fraud of
creditors, with interest thereon, shall inure to their benefit from the proceeds of the policy, if the
company be specifically notified thereof, in writing, before payment.
    Subd. 2. Exemption in favor of family. Every policy made payable to, or for the benefit of,
the spouse of the insured, or after its issue assigned to or in trust for a spouse, shall inure to that
person's separate use and that of the children of the insured or the insured's spouse, subject to the
provisions of this section.
    Subd. 3.[Repealed, 1973 c 725 s 91]
    Subd. 4. Change of beneficiary. The person applying for and procuring a policy may change
the beneficiary or beneficiaries, if the consent of the beneficiary or beneficiaries named in the
policy is obtained, or if a power so to do is reserved in the contract of insurance or in case of the
death of the beneficiary, or in the case of the dissolution of a marriage between the insured and
the beneficiary subject to any limitations on the power to change beneficiaries imposed as a
condition of the dissolution.
    Subd. 5. Substitution. When a creditor requires credit life insurance, credit accident and
health insurance, or both, as additional security for an indebtedness, the debtor shall be given
the option of furnishing the required amount of insurance through existing policies of insurance
owned or controlled by the debtor or procuring and furnishing the required coverage through any
insurer authorized to transact insurance business in this state. If this subdivision is applicable,
the debtor shall be informed by the creditor of the right to provide alternative coverage before
the transaction is completed.
History: 1967 c 395 art 2 s 12; 1976 c 121 s 1,2; 1977 c 382 s 5; 1986 c 444; 1994 c 485 s 24

Official Publication of the State of Minnesota
Revisor of Statutes