Insurance Companies, Agents, Brokers, Policies - As enacted, clarifies that the exemption from claims of creditors for the net amount payable under a policy of life insurance or under an annuity contract upon the life of a person made for the benefit of, or assigned to, the spouse, children, or dependent relatives of the person includes claims through execution, attachment, seizure, and garnishment, and that use of exempt funds does not change the classification of the funds used from exempt to nonexempt. - Amends TCA Title 56.

HB 1045 clarifies Tennessee's insurance law to ensure life insurance and annuity proceeds designated for a policyholder's spouse, children, or dependent relatives remain exempt from creditor claims - including execution, attachment, seizure, and garnishment. It explicitly states that using these exempt funds for any purpose does not change their exempt status, removing ambiguity about the phrase "for the benefit of" and the word "all" in existing law. The bill directly affects Tennessee residents with such insurance policies who name family members as beneficiaries, providing legal certainty for retirement planning and financial security. This amendment updates the 1932-era law (TCA § 56-7-203) to align with modern creditor protection standards, effective July 1, 2025.