Kansas Statutes Annotated

K.S.A. § 40-414 (2026)

Exemption of interests in policies; exceptions

✓ current as of May 2026

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40-414. Exemption of interests in policies; exceptions. (a) If a life insurance company or fraternal benefit society issues any policy of insurance or beneficiary certificates upon the life of an individual and payable at the death of the insured, or in any given number of years, to any person or persons having an insurable interest in the life of the insured, the policy and its reserves, or their present value, shall inure to the sole and separate use and benefit of the beneficiaries named in the policy and shall be free from:

(1) The claims of the insured or the insured's creditors and representatives;

(2) the claims of any policyholder or the policyholder's creditors and representatives, subject to the provisions of subsection (b);

(3) all taxes, subject to the provisions of subsection (d); and

(4) the claims and judgments of the creditors and representatives of any person named as beneficiary in the policy of insurance.

(b) The nonforfeiture value of a life insurance policy shall not be exempt from:

(1) Claims of the creditors of a policyholder who files a bankruptcy petition under 11 U.S.C. § 101 et seq. on or within one year after the date the policy is issued; or

(2) the claim of any creditor of a policyholder if execution on judgment for the claim is issued on or within one year after the date that the policy is issued.

(c) Nothing in this section shall be construed as restricting the right of the insured to change the beneficiary if the policy reserves that right to the insured.

(d) Nothing in this section shall be construed as exempting from taxation any real estate which may at any time be carried by any life insurance company as a part of its legal reserve.

(e) The provisions of subsection (b) shall apply only to life insurance policies purchased on or after July 1, 1988.

(f) The provisions of subsection (b) shall not apply to that portion of the nonforfeiture value of a life insurance policy, issued on or within one year of the filing of a bankruptcy petition under 11 U.S.C. § 101 et seq. or an execution on judgment for the claim of the creditor, which is derived from the surrender of a life insurance policy issued more than one year prior to such bankruptcy petition or such execution.

History: L. 1927, ch. 231, 40-414; L. 1933, ch. 71, § 1 (Special Session); L. 1984, ch. 170, § 1; L. 1988, ch. 217, § 1; July 1.

Notes of Decisions

Cited in 21 cases (2 in the last 5 years), 1983–2025 · leading case: Hodes v. Jenkins (In Re Hodes), 308 B.R. 61 (10th Cir. BAP 2004).

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Hodes v. Jenkins (In Re Hodes), 308 B.R. 61 (10th Cir. BAP 2004). · cites it 10× “He also claimed the insurance exempt under Kan. Stat. Ann. § 40-414 . Creditors objected to exemption of the Mass Mutual insurance policy arguing that, under Kansas law, insurance “issued” within one year of a bankruptcy filing is not exempt.”

Stutterheim v. First State Bank, Almena (In Re Stutterheim), 109 B.R. 1010 (D. Kan. 1989). · cites it 13× “The bankruptcy court explained its ruling as follows: [T]he annuity contract does not appear to fall within the plain provisions of K.S.A. 40-414. The contract is not “payable at the death of the insured” and is not payable “to any person or persons having an insurable interest…”

In Re Mueller, 71 B.R. 165 (D. Kan. 1987). · cites it 10× “” On appeal, the debtor first argues that the bankruptcy court incorrectly interpreted K.S.A. 40-414. K.S.A. 40-414 provides, generally, that a debtor’s life insurance policies are to be free from the claims of the insured’s creditors.”

In Re Douglas, 59 B.R. 836 (Bankr. D. Kan. 1986). · cites it 13× “The title of the legislation which enacted the current version of § 40-414 is “An Act *841 concerning life insurance; providing for the nonforfeiture value of life insurance policies to be subject to certain claims; amending K.S.A. § 40-414 and repealing the existing section.”

Peoples State Bank & Trust Co. v. Sayler (In Re Sayler), 68 B.R. 111 (Bankr. D. Kan. 1986). · cites it 9× “The initial question is whether these policies were “issued” within one year of the filing of the bankruptcy as that term is used in K.S.A. 40-414. See infra fn. 7. Subsection (b)(1) of that statute excepts from the general exemption rule a policy issued on or within one year of…”

Peoples State Bank & Trust Co. v. Sayler (In Re Sayler), 98 B.R. 536 (D. Kan. 1987). · cites it 9× “On November 29, 1985, the trustee filed his objection pursuant to K.S.A. 40-414 to the debtors’ claimed exemption of the Southwestern Life Insurance Company policy.”

In Re Richardson, 283 B.R. 783 (Bankr. D. Kan. 2002). · cites it 3× “See K.S.A. § 40-414; Osment v. Trout (In re Trout’s Estate), 156 Kan.”

In Re Stutterheima, 109 B.R. 1006 (Bankr. D. Kan. 1988). · cites it 7× “In his Schedule B-4, debtor claimed as exempt under K.S.A. 40-414 an American Investors Annuity dated March 6, 1986 and valued at $4,500.”

Harper Ex Rel. Harper v. Prudential Ins. Co. of Am., 662 P.2d 1264 (Kan. 1983). · cites it 2× “*369 From our reexamination of K.S.A. 40-414, which is the same statute before the court in Noller in 1935, we find no legislative expression of a public policy that the proceeds of an insurance policy must be paid to the beneficiary even though the beneficiary feloniously kills…”

In Re Barash, 69 B.R. 231 (Bankr. D. Kan. 1984). · cites it 4× “This result is not altered by the 1984 amendment to K.S.A. § 40-414 which states that the insurance exemption is not available when the policy holder files bankruptcy within one year of issuance of the policy if the policy was obtained by the policy holder for the purpose of…”

In Re Urban, 262 B.R. 865 (Bankr. D. Kan. 2001). · cites it 2× “§ 60-2312 (opting out of the § 522(d) exemptions) and K.S.A. § 40-414 (limiting the extent to which insurance policy cash value may be exempted in bankruptcy).”

In Re Chadwick, 113 B.R. 540 (Bankr. W.D. Mo. 1990). · cites it 2× “In part, that statute provides the following: K.S.A. 40-414. Exemption of interests in policies; exemptions, (a) If a life insurance company or fraternal benefit society issues any policy of insurance or beneficiary certificates upon the life of an individual and payable at the…”

Show all 21 citing cases →

— K.S.A. § 40-414(a) — 4 cases

Stutterheim v. First State Bank, Almena (In Re Stutterheim), 109 B.R. 1010 (D. Kan. 1989). “The bankruptcy court explained its ruling as follows: [T]he annuity contract does not appear to fall within the plain provisions of K.S.A. 40-414. The contract is not “payable at the death of the insured” and is not payable “to any person or persons having an insurable interest…”

Sorenson v. Tire Holdings Ltd. P'ship (In Re Vinzant), 108 B.R. 752 (Bankr. D. Kan. 1989).

In Re Stutterheima, 109 B.R. 1006 (Bankr. D. Kan. 1988). “In his Schedule B-4, debtor claimed as exempt under K.S.A. 40-414 an American Investors Annuity dated March 6, 1986 and valued at $4,500.”

Peoples State Bank & Trust Co. v. Sayler (In Re Sayler), 98 B.R. 542 (D. Kan. 1989).

— K.S.A. § 40-414(b) — 1 case

Peoples State Bank & Trust Co. v. Sayler (In Re Sayler), 98 B.R. 542 (D. Kan. 1989).

— K.S.A. § 40-414(b)(1) — 1 case

Peoples State Bank & Trust Co. v. Sayler (In Re Sayler), 98 B.R. 542 (D. Kan. 1989).

— K.S.A. § 40-414(b)(l) — 4 cases

In Re Mueller, 71 B.R. 165 (D. Kan. 1987). “” On appeal, the debtor first argues that the bankruptcy court incorrectly interpreted K.S.A. 40-414. K.S.A. 40-414 provides, generally, that a debtor’s life insurance policies are to be free from the claims of the insured’s creditors.”

Peoples State Bank & Trust Co. v. Sayler (In Re Sayler), 98 B.R. 536 (D. Kan. 1987). “On November 29, 1985, the trustee filed his objection pursuant to K.S.A. 40-414 to the debtors’ claimed exemption of the Southwestern Life Insurance Company policy.”

Peoples State Bank & Trust Co. v. Sayler (In re Sayler), 100 B.R. 57 (Bankr. D. Kan. 1988).

Peoples State Bank & Trust Co. v. Sayler (In Re Sayler), 98 B.R. 542 (D. Kan. 1989).

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