§9-107.1. Control over life insurance policy

            (a) Requirements for control. A secured party has control over a life insurance policy:

            (1) if the secured party is the insurer that issued the policy;

            (2) if the secured party is not also the insurer, the insurer signs a record acknowledging notice of the granting of a security interest to the secured party in the policy; or

            (3) another person other than the debtor:

            (A) has control of the life insurance policy and acknowledges that it has control on behalf of the secured party; or

            (B) obtains control of the life insurance policy after having acknowledged that it will obtain control of the life insurance policy on behalf of the secured party.

            (b) Additional requirement: consent of beneficiary. If the beneficiary of a life insurance policy taken as collateral is not the insured or his estate, a security interest does not attach with respect to rights under the policy until the policy beneficiary signs a record evidencing the beneficiary's consent to the security interest. This requirement does not apply when the beneficiary may be changed upon the sole request of the insured or when the policy itself provides that it may be pledged or assigned without the beneficiary's consent.

            Acts 2001, No. 128, §1, eff. July 1, 2001; Acts 2004, No. 303, §2; Acts 2024, No. 773, §1.