Insurance Companies, Agents, Brokers, Policies - As introduced, clarifies that the phrase "for the benefit of" includes the beneficiary of the insurance policy or annuity contract for purposes of the exemption from claims of creditors for a policy of life insurance or under an annuity contract made for the benefit of, or assigned to, the spouse or children, or dependent relatives of, the person whose life the policy or annuity contract is based on; clarifies that use of exempt funds does not change the classification of the funds from exempt to nonexempt. - Amends TCA Title 56.

HB 1013 clarifies that "for the benefit of" in Tennessee life insurance and annuity laws includes the named beneficiary (such as a spouse, child, or dependent relative), resolving legal uncertainty about who qualifies for protection. It directly affects policyholders and their designated beneficiaries by ensuring proceeds paid to them remain exempt from creditors' claims. The bill explicitly states that using these exempt funds does not change their protected status. This amendment updates a 1932 law to align with current beneficiary designations and plain language interpretations. The change takes effect July 1, 2025.