Page:United States Statutes at Large Volume 48 Part 1.djvu/1201

 73d C ONGRESS. SESS. II. CH. 672. JUNE 19, 1934 . 1175 ship, or any dividends or profit accruing thereon, or any valuable consideration or inducement whatever not specified in the policy, nor shall any person knowingly receive any such inducement, any rebate of premium, or any special favor or advantage in the dividends or other benefits to accrue thereon, or any paid employment or contract for services of any kind or any valuable consideration or inducement whatever, not specified in the policy. No person shall be excused from attending and testifying and producing any books, papers, or other d ocumen ts bef ore an y cour t or m agistra te, up on any inves tiga- tion, proceeding, or trial for a violation of any of the provisions of this section, upon the ground or for the reason that the testimony or evidence, documentary or otherwise, required of him may tend to convict him of a crime or subject him to a penalty or forfeiture ; but no person shall be prosecut ed or sub jected to any pena lty or fo rfeiture for or on account of any transaction, matter or thing concerning which he may so testify or produce evidence, documentary or other- wise, and no testimony so given or produced shall be received against him upon any criminal investigation or proceeding. Nothing in this section shall be so construed as to forbid a company, transacting industrial life insurance, from returning to policyholders, who have made pr emium paymen ts for a per iod of at lea st one year, direc tly to the company at its home or distant offices, a percentage of such a premium which the company would have paid for the collection thereof. SEC. 16. RIGHTS OF CREDITORS AND BENEFICIARIES UNDER POLICIES OF Rights of creditors and beneficiaries under LIFE INSURANCE .-When a policy of insurance, whether heretofore or policies of life msur hereafter issued, is effected by any person on his own life or on ante. another life in favor of some person other than himself having an insurable interest therein, or, exce pt in cas es of tra nsfer wit h intent to defraud creditors, if a policy of life insurance is assigned or in any way made payable to any such person, the lawful beneficiary or assignee thereof other than the insured or the person so effecting such insurance, or his executors or administrators, shall be entitled to its proceeds and avail against the creditors and representatives of the insured and of the person effecting such insurance whether or not the right to change the beneficiary is reserved or permitted and whether or not the policy is made payable to the person whose life is insure d, if the benefici ary or as signee sh all prede cease suc h person Provided, That subject to the statute of limitations the amount of Proviso. any premiums for sai d insurance paid with intent to defraud n ms t o d ef rau d ere di - creditors, with in terest th ereon, sh all inure to their benefit from the tars. proceeds of the policy, but the company issuing the policy shall be discharged of all liability thereon by payment of its proceeds in accordance with its terms, unless before such payment the company shall have written notice by or in behalf of a creditor of a claim to recover for transfer made or premiums paid with intent to defraud credito rs wit h spec ificat ions o f the amount claime d. SEC. 16 (a) EXEMPTION OF DISABILITY INSURANCE FROM EXEOU- Exemp tion of di sa- bility insurance from TI ON .-No money or other benefit paid, provided, allowed, or agreed execution. t o be paid by any company on account of the disability from injury or sickness of any insured person shall be liable to execution, attachment, garnishment, or other process, or to be seized, taken, appropriated or applied by any legal or equitable process or opera- tion of law, to pay any debt or liability of such insured person whether such debt o r liab ility was in curred before or af ter th e com- mencement of such disability, but the provisions of this section shall not affect the assignability of any such disability benefit otherwise assignable, nor shall this section apply to any money income disa- bility benefit in an action to recover for necessaries contracted for