## United States Bankrup tcy Appellate P anel

FOR THE EI GHT H CIRCUI T

No. 1 1- 60 68

In re: *

*

Karo lyn Jo y ce Br y an *

*
Deb to r. *

*

Karo lyn Jo y ce Br y an , * App eal fro m th e

* Uni te d S ta te s Deb to r - App el la nt

, * Ban kr up tc y Co ur t fo r th e

* W es te rn Dis tri ct of M is so ur i

v. *

*

Ja ni ce E. Sta nt on , *

*

Trus te e - Ap pe ll ee. *

Su bm it te d: Feb ru ary 21 , 20 12
Fi le d: Marc h 2 1, 2 01 2 (Fi li ng Date Co rrec te d o n M arch 22 , 20 12 )

Befo re KRESSEL, Ch ie f Ju dg e, SCHERM ER an d S ALADINO, Bank ru pt cy Ju dg es

SCHERM ER, Ban kr up tc y Ju dg eThe de bt or , Karo lyn Jo y ce Bryan (th e “ Deb to r”), ap pe al s an or de r of th e Uni te d

St at es Ban kr up tc y C o u r t fo r th e W es te rn Dis tri ct of Mi ss ou ri, su st ai ni ng th e 1

ob jecti on of th e Ch ap te r 7 t ru st ee, J an ic e E. Stan to n (t he “ Trus te e”), t o h er cl ai m ed

ex em pt io n of h er int eres t in an an nu it y

. W e ha ve juri sd ic ti on ov er thi s app eal fro m

th e fin al or de r of th e ba nk ru pt cy co ur t. Se e 28 U.S.C. § 15 8( b)

. Fo r th e reas on s se t

fo rth be lo w, we affi rm

.

IS SUE S

W e co ns id er th e th res ho ld is su e of whe th er re s ju di ca ta ba rred th e Deb to r fro m

se ek in g an ex em

pt io n in th e Ann ui ty un de r M O

. R E V

. S T A T

. §§ 51 3.4 30 .1(7 ), 37 7.3 30

an d 37 7.0 90

. Nex t, we de te rm in e whe th er §§ 51 3.4 30 .1(7 ), 37 7.3 30 or 37 7.0 90 al lo w
th e Deb to r to ex em

pt he r in te res t in an an nu it y

. W e co nc lu de th at : (1) re s ju di ca ta 2

ap pl ie d to th e Deb to r’s cl ai m of an ex em pt io n; a n d ( 2 ) e v en if re s ju di ca ta di d no t

ap pl y , th e b an kr up tc y

co ur t p ro pe rly dis al lo wed th e Deb to r’s cl ai m ed ex em pt io n.

BACKGRO UND

On Ja nu ary 29

, 20 10

, th e Deb to r fil ed a pe ti ti on fo r rel ie f un de r Ch ap te r 13 of

Tit le 11 of th e Uni te d St at es Co de (th e “ Ban kr up tc y Co de ”). O n A u g us t 23 , 2 01 0,

th e Deb to r’s cas e was co nv ert ed to a Ch ap te r 7 cas e an d, th erea fte r, th e Trus te e was

ap po in te d. In 19 93

, th e Deb t o r pu rch as ed fro m an in su ran ce co m pa ny (th e

The Hon or ab le Denn is D. Dow, Chi ef Un it ed Sta te s B an kr up tc y 1

Ju dg e fo r th e Weste rn Dis tri ct of M is so ur i.

The Debt or

do es no t s pe ci fic al ly refer t o § 51 3.4 30 .1(7 ) in he r br ie fs

. 2

Howev er, t he Trus te e an al y zes whet he r th e an nu it y was e xe m

pt un de r §5 13 .43 0.1 (7 ) in he r br ie f in co nn ect io n wi th he r arg um en t t ha t t he an nu it y was

no t i ns ur an ce. We con si de r th e b an kr up tc y co ur t’s d eci si on s u nd er §§ 51 3.4 30 .1(7 ), 37 7.3 30 an d 3 77 .09 0.

-2-“ Co m

pa ny”) a no n- qu al ifi ed de ferr ed va ria bl e an nu it y (th e “ Ann ui ty”) fo r $3 0,0 00

.

3

The Deb to r ha s m ad e no co nt rib ut io n to he r Ann ui ty si nc e m ak i n g h e r $3 0,0 00

co nt rib ut io n in 19 93

. Paym en ts to t h e D e bt or un de r th e Ann ui ty co nt ract be gi n in

20 33

.

The Deb to r’s Sch ed ul e C, refl ect in g he r cl ai m ed ex em pt io ns , h as be en

am en de d se ve ral ti m e s s i n c e i t was or ig in al ly fil ed in he r Ch ap te r 13 cas e. The

or ig in al or de r of th e ba nk ru pt cy co ur t ov erru li ng th e Deb to r’s cl ai m of an ex em pt io n

was en te red on Ju ne 4, 20 10

. The ba nk ru pt cy co ur t en te red or de rs su st ai ni ng
ob jecti on s to th e Deb to r’s cl ai m of an ex em pt io n fo r he r in te res t in th e Ann ui ty un de r

M O

. R E V

. S T A T

. §§ 41 3.5 30 .1(1 0) (e) an d (f). In Feb ru ary 20 11

, th e Deb to r am en de d

h e r S c h e d u l e C in he r Ch ap te r 7 cas e to cl ai m an ex em pt io n fo r he r in te res t in th e

Ann ui ty un de r “ RSM O §5 13 ,43 0.1 (1 0) (e)[ ,] RSM o §§ 37 7.0 90

, 37 7.3 30

, 37 6.5 30

, 3 7 6

. 5 50

, 37 6.5 60 .” The Trus te e ob jecte d to th is cl ai m of an ex em pt io n in th e

Ann ui ty by th e Deb to r, m ak in g arg um en ts reg ard in g th e in ap pl ic ab il it y of §§ 37 7.0 90

an d 51 3.4 30 (1 0) (e). In he r res po ns e to th e Trus te e’s ob jecti on , th e Deb to r arg ue d th at

th e A nnui ty w as ex em

pt unde r §§51 3.4 30 .1(7 ), 51 3.4 30 .1(1 0) an d 37 7.0 90

, in cl ud in g

an arg um en t th at th e Ann ui ty sh ou ld be go ve rn ed as li fe in su ran ce, ev en th ou gh sh e

ha d n o t c l a i med an ex em pt io n un de r §5 13 .43 0.1 (7 ) in he r Sch ed ul e C. The

ba nk ru pt cy co ur t he ld a he ari ng in Apr il 20 1 1 a nd en te red an or de r (th e “ Apr il

Ord er”)

, su st ai ni ng th e Trus te e’s ob jecti on to th e Deb to r’s cl ai m of an ex em pt io n in

th e Ann ui ty. The Deb to r di d n ot ap pe al th e b an kr up tc y co ur t’s Ap ril 20 11 Orde r.

I n s t e a d, th e Deb to r am en de d he r Sch ed ul e C ag ai n in Apr il 20 11

, th is t i me
cl ai m in g an ex em

pt io n f o r h e r in te res t in th e Ann ui ty pu rs ua nt to “ RSM o §

The Debt or

ha s re ferr ed to th e in su ran ce co m pa ny usi ng di ffer en t 3

na m es , so m e o f whi ch are d iff eren t fr om

th e n am e li st ed on th e Ann ui ty con tra ct

.

-3-51 3.4 30 (7 ).

. . RSM o §§ 37 7.0 90

, 37 7.3 30

, RSM o [§ §]37 7.0 90 & 37 7. 33 5.

. . .” In 4

i t s Sep te m

be r 2, 20 11 Mem or an du m Opi ni on an d Ord er th at is th e su bjec t of th i s

ap pe al (th e “ Sep te m

be r Ord er”) , th e b an kr

up tc y co ur t d es cri be d t he Debt or ’s cla im

as on e in whi ch “ th e Ann ui ty is ex em pt as li fe in su ran ce un de r §5 13 .43 0.1 (7 ) of th e
Misso ur i Revi se d St at ut es an d th at th e Ann ui ty can no t be se iz ed un de r §§ 37 7.0 90 an d

37 7.3 30 .”

In Ju ne 20 11

, th e ba nk ru pt cy co ur t co nd uc te d a he ari ng on th e Deb to r’s Apr il

20 11 cl ai m of an ex em

pt io n in th e Ann ui ty. At th e Ju ne 20 11 he ari ng , th e ba nk ru pt cy

co ur t st at ed th at at th e Apr il he ari ng it “ di d sa y th at li fe in su ran ce is li fe in su ran ce an d

an an nu it y

is an an nu it y

. . . . ” The ba nk ru pt cy co ur t al so st at ed th at §5 13 .43 0.1 (7 )

was no t rel ev an t. It id en ti fie d as th e qu es ti on s th at rem ai ne d un an swe red whe th er th e

Ann ui ty i s ex em

pt un de r §§ 37 7.3 30 an d 37 7.0 90

. The co ur t th en id en ti fie d op en
is su es wit h re sp ect to th es e qu es ti on s: (1 ) whe th er the Ann ui ty is th e ki nd of po li cy
de sc rib ed in §§ 37 7.3 30 an d 37 7.0 90 an d whe th er th e Co m pa ny was au th or iz ed to do

bu si ne ss as on e of th e co m pa ni es id en ti fie d un de r th es e st at ut es ; an d ( 2 ) w h e t he r §§ 37 7.3 30 an d 3 77 .09 0 are exem pt io n st at ut es aft er Ben n v . Col e (In re Ben n) , 49 1

F.3 d 81 1 (8 th Ci r. 20 07 ). The co ur t a ll owe d th e pa rti es ad di ti on al ti m e to su bm it

br ie fs an d ev id en ce, an d a co py of th e Ann ui ty was pr ov id ed to th e ba nk ru pt cy co ur t

as an ex hi bi t to th e Trus te e’s br ie f. On Sep te mb e r 2, 20 11

, th e ba nk ru pt cy co ur t

en te red th e Sep te m

be r Ord er, su st ai ni ng th e Trus te e’s ob jecti on to th e Deb to r’s cl ai m

of an ex em pt io n fo r he r in te res t i n t he Ann ui ty.

STANDARD OF REVIEW

W e rev ie w fin d i n g s o f fact fo r cl ear erro r an d co nc lu si on s of la w de no vo

. Gri mli e v. Geo rg en –Ru nn in g (In re Gri mli e ), 43 9 B

. R

. 71 0, 71 5 (B.A.P. 8t h Ci r.

20 10 ) (ci ta ti on om it te d)

.

The refe ren ce t o M O

. R E V

. S T A T . §3 77 .33 5 a pp ears to be an erro r 4
be cau se §3 77 .33 5 i s n ot a pa rt o f th e Mi ss ou ri R ev is ed Sta tu te s.

-4-DISCUSS IO N

“ [M]os t as se ts be co m e pr op ert y of t he est at e up on th e co m m en cem en t of th e
ba nk ru pt cy cas e, se e 11 U.S.C. §5 41

, an d ex em pt io ns rep res en t th e de bt or 's at te m pt

to recl ai m th os e as se ts or , m or e of te n, cert ai n in te res ts in th os e as se ts

, to th e cred it or s'

de tri m en t.” M

w a n g i v. W

el ls Far go Ban k, N.A. (In re Mwa ng i)

, 43 2 B.R. 81 2, 82 0
(9 th Ci r. BAP 20 10 )(q uo ti ng Sc hw ab v. Reil ly

, 13 0 S. C t

. 26 52 (2 01 0) ). Cl ai m s of

ex em pt io ns are to be co ns tru ed li be r a l l y i n fav or of th e ex em pt io n. No rw es t Ban k

Neb ., N .A. v. Tvet en (In re Tvet en ) , 8 48 F.2 d 87 1, 87 5 (8 th Ci r.19 8 8 )

. Th e Trus te e
be ars th e bu rd en of pr ov in g th at th e Deb to r di d no t p ro pe rly cl ai m th e ex em pt io n.

Se e Fed

. R. Ban kr .P. 40 03 (c). The refo re, “ [i]f th e Tr u s t ee m eet s hi s bu rd en to

pr od uc e ev id en ce i n s up po rt o f th e o bjec ti on , th e b ur de n o f pr od uc ti on sh ift s t o t he

d e b t o r to sh ow th at th e cl ai m ed ob jecti on is pr op er.” Dan du ra n v. Ka le r (In r e

Dan du ra n)

, 65 7 F.3 d 74 9, 75 4 (8 th Ci r. 20 11 ) (ci ta ti on s om it te d)

. “ [I]f th e ob jecti ng

pa rty fai ls to pr od uc e ev id en ce in su pp or t of th e ob jecti on , an y fact ua l is su e m us t be

res ol ve d in fav or of th e de bt or .” Id

. (ci ta ti on s om it te d)

. The Trus te e ha s th e bu rd en

of pe rs ua si on

. Id

.

The Ban kr up tc y Co de al lo ws a de bt or to ex em p t : ( 1 ) pr op ert y li st ed in

Ban kr up tc y Co de §5 22 (d ); or (2 ) pr op ert y whi ch is ex em pt un de r ap pl ic ab le st at e la w

an d fed eral la w ot he r th an §5 22 (d ). 11 U.S.C. §5 22 (b )(1 ). A st at e m ay op t ou t of th e §5 22 (d ) fed eral ba nk ru pt cy la w ex em pt io ns

. 11 U.S.C. § 52 2( b) (2 ). Pu rs ua nt to M O

. R E V

. S T A T

. §5 23 .42 7, Mi ss ou ri ha s op te d ou t of th e fed eral ba nk ru pt cy la w

ex em pt io n sc he m e. The Deb to r cl ai m ed an ex em pt io n un de r th ree Mi ss ou ri st at ut es , M O

. R E V

. S T A T . §§ 51 3.4 30 .1(7 ), 37 7.3 30 an d 3 77 .09 0.

W e , t h e r e f

o r e , c o n s i d e r t h e b a n k r u p t c y c o u r t ’ s d e c i s i o n s u s t a i n i n g t h e

Trus te e’s ob

jecti on to th e Deb to r’s cl ai m of an ex em p ti on fo r he r in te res t in th e

Ann ui ty pu rs ua nt to th e th ree Mi ss ou ri st a t u t e s c i te d by th e Deb to r. Sect io n

5 1 3

. 43 0.1 (7 ) pr ov id es a li st of pr op ert y th at “ sh al l be ex em pt fro m at ta ch m en t a n d

ex ecu ti on ” in cl ud in g “ [a]ny on e o r m or e un m at ur ed li fe in su ran ce co nt ract s own ed

-5-b y s uc h pe rs on , ot he r th an a cred it li fe in su ran ce co nt ract .” M O

. R E V

. S T A T

.

§5 13 .43 0.1 (7 ).

Sect io n 3 77 .33 0 s ta te s t ha t:

The m on ey or ot he r be ne fit

, ch ari ty, rel ie f or ai d to be pa id

, pr ov id ed or

ren de red by an y co rp or at io n au th or iz ed to do bu si ne s s un de r se ct io ns 37 7.2 00 t o 3 7 7 .46 0, sh al l no t be li ab le to at ta ch m en t or ot he r pr oc es s,

an d sh al l no t be se iz ed

, ta ke n or ap pr op ria te d or ap pl ie d by an y le ga l or
eq ui ta bl e pr oc es s, no r by op erat io n of la w, to pa y an y de bt or li ab il it y of

a po li cy of a cert ifi cat e ho ld er, or of an y be ne fic ia ry na m ed in a po li cy

or cert ifi cat e.

M O

. R E V

. S T A T

. §3 77 .33 0. It ap pl ie s to m on ey an d be ne fit s fro m a “ st i p u l a t e d

pr em iu m ” li fe i ns ur an ce co m pa ny.

Sect io n 37 7.0 90 co nta ins la ngua ge id en ti cal to §3 77 .33 0, ex cep t th at it pe rta in s

to m on ey an d be ne fit s fro m an “ as se ss m en t pl an ” li fe in su ran ce co m pa ny, rat he r th an

a “ st ip ul at ed pre m iu m ” li fe i ns ur an ce co m pa ny. M O

. R E V

. S T A T . §3 77 .09 0.

I. Res Ju di ca ta

“ W e m ay affi rm th e ba nk ru pt cy co ur t's or de r on an y ba si s su pp or te d b y t he

reco rd

, ev en if th at gr ou nd was no t co ns id ered by th e tri al co ur t.” Ca wl ey v. Cel es te (In re Ath en s/

Alp ha Gas Co rp .)

, 46 3 B.R. 88 3,8 86 -8 7 (B.A.P. 8t h Ci r. 20 12 ) (q uo ti ng

Mid –C it y Ban k v. Sk

yl in e W oo ds Homeo wn er

s Ass oc

. (In re Sk

yl in e W oo ds Co un tr

y
Cl ub , LLC

), 43 1 B.R. 83 0, 83 6 n. 1 6 (B .A.P. 8t h C ir. 2 01 0) (ci ta ti on th erei n)

, af f'd

, 63 6 F.3 d 46 7 (8 th Ci r. 20 11 )). W e affi rm th e de ci si on of th e ba nk ru pt cy co ur t ba se d

on ap pl ic at io n o f re s j ud ic at a

.

-6-Res ju di ca ta pr ev en ts “ th e rel it ig at io n of a clai m on gro un ds th at were rais ed

or co ul d ha ve be en rai se d in th e pr io r su it .” Ban ks v. In t’l Uni on Elec

. , 39 0 F.3 d

10 49

, 10 52 (8 th Ci r. 20 04 ) (q uo ti ng La ne v. Pete rs on , 89 9 F.2 d 73 7, 74 1 (8 t h Ci r.

19 90 ) (ci ta ti on om it te d) ). Rel it ig at io n of a cl ai m is ba rred un de r re s ju di ca ta whe re

“ a fin al jud gm en t was en te red by a co ur t of co m pe te nt juri sd ic ti on , if th e sa m e pa rti es (o r th ei r pr iv ie s) an d th e sa m e cau se of act io n are i n v o l v e d

. ” L ad d v. Ries (In re

La dd )

, 45 0 F.3d 75 1, 75 3 (8t h Cir. 20 06 ) (ci ta ti on om it te d)

. A cl ai m is ba rred “ if it

ari se s ou t of th e sa m e nu cl eu s of op erat iv e fact s as th e pr io r cl ai m .” Ban ks

, 39 0 F.3 d

at 10 52 (q uo ti ng La ne , 89 9 F.2 d at 7 4 2 ( c i t a t io ns om it te d) ). “ [W] he re a pl ai nt iff

fas h i o n s a ne w th eo ry of reco ve ry or ci te s a ne w bo dy of la w th at was arg ua bl y
vi ol at ed by a de fen da nt ’s co nd uc t, re s ju di ca ta wil l sti ll ba r th e se co nd cl ai m if it is

ba se d on th e sa m e nu cl eu s of op erat iv e fact s as th e pr io r cl ai m .” Ban ks

, 39 0 F.3d at

10 52 -5 3 (q uo ti ng La ne , 89 9 F .2d at 7 44 ).

Res ju d i c a ta ba rred th e Deb to r fro m cl ai m in g ex em pt io ns un de r §§ 41 3.5 20 .1(7 ), 37 7.3 30 an d 37 7.0 90

. Befo re th e ba nk ru pt cy co ur t e n t e red th e Sep te m be r Ord er, it en te r e d f

i n a l or de rs , in cl ud in g th e Apr il Ord er, su st ai ni ng th e

Tr u s te e’s ob

jecti on s to th e Deb to r’s cl ai m of an ex em pt io n fo r he r in te res t in t h e

Ann ui ty un de r va rio us Mi ss ou ri st at ut es

. The pa rti es to th e Sep te m be r Ord er are th e

sa m e p art ie s t o t he ba nk ru pt cy co ur t’s Ap ril Orde r an d t he pri or ord ers de nyin g t he

D e b to r’s req ue st fo r an ex em pt io n in th e Ann ui ty. The Deb to r co ul d ha ve , a n d

sh ou ld ha ve , l it ig a t e d t h e i s s ue s rel at ed to he r cl ai m of ex em pt io ns un de r al l of th e

Mi ss ou ri st at ut es th at sh e al le ge s are ex em pt io n st at ut es be fo re th e ba nk ru pt cy co ur t

en te red it s pr ev io us or de rs

. The se cl ai m s sh are a co m m on nu cl eu s of op erat iv e fact

in th at th ey in vo lv e an in te rp ret at io n of th e Ann ui ty an d th e D e b to r’s rig ht s

th ereu nd er.

M o r eo ve r, at th e Ju ne 20 11 he ari ng th at le d to th e Sep te m be r Ord er, t h e
ba nk ru pt cy co ur t rejecte d th e Deb to r’s cl ai m of an ex em pt io n un de r §5 13 .43 0.1 (7 ),

no ti ng th at at th e Apr il 2 0 1 1 h e a r i n g it al read y “ di d sa y th at li fe in su ran ce is li fe

-7-in su ran ce an d an an nu it y is an an nu it y

. . . . , ” w h i c h w as on e of th e ba se s fo r th e

ba nk ru pt cy co ur t’s Sep te m be r Ord er and an is su e th at we co ns id er in th is cas e. W e

al so no te th at two of th e st at ut es up on whi ch th e Deb to r rel ie d fo r he r Apr il 20 11

cl ai m of an ex em

pt io n th at le d to th e ba nk ru pt cy co ur t’s Sep te m be r Ord er, §§ 37 7.3 30

an d 37 7.0 90

, were alre ad y li st ed by the Debt or in he r Feb ru ary 20 11 Sch ed ul e C as

ba se s fo r an ex em

pt io n. 5

W e ack no wled ge th e de ci si on in La dd v. Ries (In re La dd )

, 45 0 F.3 d 75 1 (8 th

Ci r. 20 06 ), in whi ch th e Eig ht h Ci rcu it ru le d th at re s ju di ca ta di d no t ba r th e de bt or s

fro m am en di ng th ei r ba nk ru pt cy sc he du le s to cl ai m th ei r farm as ex em pt pr op ert y

un de r Mi nn es ot a la w, a fte r th e ba nk ru pt cy co ur t ha d di sa ll owe d th e d e b t o r s ’ cl ai m

of an ex em

pt io n in th e farm u n d e r ba nk ru pt cy la w. The La dd de ci si on is

di st in gu is ha bl e be cau se th at cas e co nc ern ed th e de bt or s’ cl ai m of a st at e ho m es te ad

ex em pt io n aft er th e de bt or s ha d be en de ni ed an ex em pt io n un de r ba nk ru pt cy la w by

de fau lt

, an d th e is su es of fact to be de te rm in ed in La dd were di ffer en t un de r th e st at e

an d fe de ral ex em

pt io ns

. Here, the Deb to r ci te s to si m il ar, and so m et im es th e sa m e,

st at e st at ut es , trying to cl ai m th e Ann ui ty as ex em

pt . The An nu it y

ha s n ot ch an ge d

si nc e th e Deb to r’s fir st at te m pt to cl ai m it as ex em

pt

. W e al so no te th at ev en th ou gh

a pa rty co ul d no t cl ai m th e sa m e pr op ert y as ex em pt un de r st at e la w an d Ban kr up tc y

Co de ex em

pt io ns at th e sa m e ti m e, th e Deb to r co ul d (an d di d) cl ai m th e Ann ui ty as

ex em pt un de r m

ul ti pl e st at e st at ut es at o nc e. Se e 11 U.S.C. §5 22 (b )(1 ).

II

. Debto r’s cl ai m of an ex emptio n fo r her in tere st in the Annui ty purs ua nt

to M O

. R E V

. S T A T .§§ 51 3.4 30 .1(7 ), 37 7.3 30 an d 3 77 .09 0

W e al so aff

i r m t h e ba nk ru pt cy co ur t’s de ci si on on th e ba se s th at : (1 ) th e
ba nk ru pt cy co ur t pr op erl y de te rm in ed th at th e reco rd do es no t sh ow th at th e Co m pa ny

was “ au th or iz ed to do bu si ne ss ” as a st ip ul at ed pr em iu m ” o r “as s e ss m en t pl an ”

The ba nk ru pt cy

co ur t’s Ap ril Orde r st at es th at “ th e is su es were t rie d 5

an d t he Co ur t an no un ced it s d eci si on on th e rec or d.”

-8-in su ran ce co m pa ny, as is req ui red fo r §§ 37 7.3 30 an d 37 7.0 90 to ap pl y to th e Ann ui ty;

an d (2 ) th e Ann ui ty is n ot in su ran ce, as is req ui red for an y of t he th ree s ta tu te s.

A. Sect io ns 37 7.3 30 an d 37 7.0 90 do no t ap pl y to the Annui ty bec au se the reco rd do es no t sh ow tha t the Company is “ a u t h o r iz ed to do

bus in es s” under §§ 37 7.2 00 to 3 77 .46 0 o r § §3 77 .01 0 to 37 7.1 90

The ba nk ru pt cy co ur t pr op erl y su st ai ne d th e Tr ust ee ’ s obj ec tio n to the Deb to r’s

cl ai m of an e xe m

pt io n in th e Ann ui ty un de r §§ 37 7.3 30 an d 37 7.0 90 be cau se th os e

st at ut es do no t ap pl y to th e Ann ui ty. Sp eci fic al ly, we ag ree wit h th e ba nk ru pt cy

co ur t’s de te rm in at io n th at th ere was no ev id en ce th at th e Co m pa ny th at wou ld m ak e

pa y m en t on th e Ann u i ty is “ au th or iz ed to do bu si ne ss ” as a “ st ip ul at ed pr em iu m ”

in su ran ce co m

pa ny un de r § § 3 7 7 .20 0 to 37 7.4 60 or as an “ as se ss m en t pl an ”

in su ran ce co m

pa ny u n d er§ §3 77 .01 0 to 37 7.1 90

, as is req ui red by §§ 37 7.3 30 or

37 7.0 90 , res pe ct iv el y

.

To su pp or t he r po si ti on th at th e Co m pa ny was au th or iz ed to do bu si ne ss un de r §3 77 .20 0 to 37 7.4 60 as a st ip ul at ed pr em iu m co m pa ny (an d, th eref

or e, th at §3 77 .33 0

ap pl ie s)

, th e Deb to r refe rs to th e pu bl ic reco rd s of th e N a t i o n a l Ass oc ia ti on of

In su ran ce Co m

m is si on e r s. Acco rd in g to th e Deb to r, th es e reco rd s sh ow th at th e

Co m pa ny is au th or i z ed to is su e al l types of an nu it y po li ci es in Mi ss ou ri an d,

th eref or e, th e Co m

p a n y (an d pr es um ab ly th e Ann ui ty) is “ pr ot ect ed by Sect io n

37 7.3 30

. . . .” As th e ba nk ru pt cy co ur t co rrec tl y fo un d whe n it as si gn ed “ li tt le

, if an y ,
pr ob at iv e va lu e” to th e pu bl ic reco rd s to whi ch th e Deb to r refe rs , th es e reco rd s co ul d

sh ow on ly th at th e Co m

pa ny is act iv el y li cen se d to “ se ll ‘L ife an d Heal th ’ in su ran ce

pr od uc ts un de r ‘Ch 37 6 & 377

, RSM o.’” It do es no t fol lo w fro m th es e reco rd s th at

th e Co m pa ny was au th or iz ed to do bu s i n e s s as a st ip ul at ed pr em iu m in su ran ce

co m pa ny. The Deb to r arg ue s fu rth er th at

, ba se d on he r co m pa ris on of th e Ann ui ty’ s

te r ms t o th e st at ut or y req ui rem en ts fo r a po li cy is su ed by a st ip ul at ed pr em iu m

in su ran ce co m

pa ny, th e Ann ui ty is a po li cy is su ed by a st ip ul at ed pr em iu m in su ran ce

-9-co m

pa ny. B u t it do es no t ap pe ar th at th e Deb to r pr es en te d th is arg um en t to th e
ba nk ru pt cy

co ur t an d, i n a ny even t, t he Debt or ’s arg um en t i s u nc on vi nc in g.

Our de ci si on is fu rth er su pp or te d by co m m en ta ry reg ard in g §§ 37 7.3 30 an d

37 7.0 90 in th e Jo ur na l o f t h e M i s so ur i Bar. Se e Keit h A. Herm an , Usi ng Li fe

In su ra nc e fo r As s e t Pr o t ect io n. W ha t is Rea ll

y Pro te ct ed ?

, 68 J. M O .B A R
, 14

, 16
(2 01 2)

. Thi s art ic le po in ts ou t th at §§ 37 7.3 30 an d 3 7 7

. 0 9 0 “ on ly ap pl y to ve ry

sp eci fic types of li fe in su ran ce

. . .” Id

. at 18

. In ad di ti on , th e art ic le st at es th at th ere

are no t an y do m es ti c st ip ul at ed pr em iu m pl an li fe in su ran ce co m pa ni es , an d on ly two

do m es ti c as se ss m en t pl an in su ran ce co m pa ni es , th at cu rren tl y co nd uc t bu si ne ss in

Mi ss ou ri. Id

. (ci ti ng M O

. I N S U R A N C E P R A C T IC E §3 .7 (Mo Bar Su pp

. 20 10 ) M O

. 6

I N S U R A N C E P R A C T IC E §3 .8 (Mo Bar 5t h ed

. 20 04

, 20 10 )). Lik ewis e, th e art ic le po in ts

us to §3 77 .02 0.4

, whi ch st at es th at an in su ran ce co m pa ny co ul d no t be or ga ni zed “ to

do bu si ne ss on th e as se ss m en t p l a n u n d e r th e pr ov is io ns of se ct io ns 37 7.0 10 to

37 7.1 90 ” aft er Sep te m

be r 1, 19 53

. M O

. R E V

. S T A T

. §3 77 .02 0.4

. And §3 77 .19 9

pr ov id e s t h a t st ip ul at ed pr em iu m pl an li fe in su ran ce co m pa ny co ul d no t be

“ or ga ni zed or in co rp or at ed un de r th e pr ov is io ns of se ct io ns 37 7.2 00 to 37 7.4 60 " aft er

19 59

. M O

. R E V

. S T A T . § 37 7.1 99

. The rari ty an d sp eci fic it y of st ip ul at ed pr em iu m

an d as se ss m en t pl an in su ran ce po li ces in Mi ss ou ri, t h e r efo re, su pp or t ou r de ci si on

th at th e Ann ui ty is n ot wit hi n t he sco pe of § §3 77 .33 0 a nd 37 7.0 90

.

B. Sect io ns 51 3.4 30 .1(7 ), 3 7 7

. 3 3 0 an d 37 7.0 90 do no t ap pl y to the
Annui ty beca us e the Annui ty is no t in su ra nce

Fo r m an y of

th e sa m e rea so ns set for th by the ba nk ru pt cy co ur t, we h ol d t ha t

no ne of th e th ree st at ut es ci te d b y t h e D e bt or in he r Sch ed ul e C, §§ 51 3.4 30 .1(7 ),

37 7.3 30 an d 37 7.0 90

, ap pl y to th e Ann ui ty be cau se th es e st at ut es ap pl y to in su ran ce

an d t he Ann ui ty is n ot in su ran ce.

The Debt or

id en ti fie d t he Ann ui ty’ s i ss ue r as a fo rei gn co m pa ny 6
do in g b us in es s i n M is so ur i. Eve n i f th e is su er i s a f or ei gn , rat he r th an a do m es ti c,

co m pa ny, the art ic le su pp or ts a po si ti on th at th es e p ol ic ie s ar e sp eci fic an d ra re.

-10-By it s te rm s, §5 13 .43 0.1 (7 ) ap p li es on ly to “ un m at ur ed li fe in su ran ce

co nt ract s.” As th e ba nk ru pt cy co ur t ap tl y no te d, “ th e te rm ‘ann ui ty’ is co ns pi cu ou sl y

m is si ng .” Lik ewis e, §§ 37 7.3 00 an d 37 7.0 90 ap pl y to in su ran ce. Eve n th ou gh th e

te xt of ne it he r §3 77 .33 0 no r §3 77 .09 0 sp eci fic al ly m en ti on s in su ran ce, th es e st at ut es

refe r to co rp or at io ns th at are au th or iz ed to do bu si ne ss un de r §§ 37 7.2 00 to 37 7.4 60

or §§ 37 7.0 10 to 37 7.1 9 0

. Sect io n 37 7.2 00 se ts fo rth whi ch co m pa ni es “ sh al l be

de em ed to be en ga ge d in th e bu si ne ss of li fe in su ra nc e up on th e st ip ul at ed pr em iu m pl an .” M O

. R E V

. S T A T

. §3 77 .20 0 (em ph as is ad de d)

. Sect io n 37 7. 010 se ts fo rth whi ch

co nt ract s “ sh al l be de em ed a co nt ract of in su ra nc e up on th e as se ss m en t pl an .” M O

. R E V

. S T A T

. §3 77 .01 0 (em ph as is ad de d)

. In ad di ti on , as th e ba nk ru pt cy co ur t no te d,

th e ti tl e of th e Ch ap te r of th e Mi ss ou ri St at ut es whe re §§ 37 7.3 30 a n d 3 7 7

. 0 9 0 are

fo un d is cal le d “ Ass es sm en t Pl an an d St ip ul at ed Prem iu m Pl an Life In su ran ce,” an d

th e su bt it le s o f th es e st at ut es als o s ho w th at th e st at ut es co nc ern li fe i ns ur an ce.

The Ann ui ty is no t i n s u r a nc e un de r th e rel ev an t st at ut es

. W e ag ree wit h th e
ba nk ru pt cy co ur t’s de te rm in at io n th at

, ev en th ou gh th ere are si m il ari ti es be twee n li fe

in su ran ce co nt ract s an d an nu it ie s, th e two are qu it e di ffer en t. The se di ffer en ces are
sh own by th e Ann ui ty at is su e he re. And th e rec o rd si m pl y do es no t sh ow th at th e

an nu it y is in su ran ce. The ba nk ru pt cy co ur t co rrec tl y po in te d ou t th at whe reas a li fe

in su ran ce co nt ract is no rm al ly fu nd ed in reg ul ar in te rv al s an d is pa y ab le at de at h, th e

Ann ui ty w as fun de d o nl y at i ts in cep ti on an d i t i s p ay ab le at a pre -d et erm in ed da te

. The m ere fact th at th e Ann ui ty was is su ed by an in su ran ce co m pa ny was in su ffi ci en t

to m ak e th e Ann ui ty life in su ran ce.

W e fin d pe rs ua si ve th e ba nk ru pt cy co ur t’s refe re n c e to th e Su pr em e Co ur t’s

an al y si s in Na ti on sb an k of No rt h Ca ro li na
, N.A. v. Va r i a b l e An n ui ty Li fe In s. Co

. , 51 3 U.S. 25 1 (1 99 5)

. Eve n th o u g h t h e ho ld in g in Na ti on sb an k was li m it ed to th e

fact s of th at cas e, Na ti on sb an k su pp or ts th e po si ti on th at an nu it y an d a li fe in su ran ce

co nt ract are no t pr es um ed to be th e sa m e. As pa rt of it s an al y si s of whe th er an nu it ie s

are cl a s s i f

i e d as in su ran ce un de r a se pa rat e st at ut or y reg im e, th e Co ur t in

-11-Na ti on sb an k reject ed arg u men t s th at an nu it ie s co ul d be cl as si fie d as in su ran ce

be cau se th ey are of

te n reg ul at ed as in su ran ce an d ha ve be en so ld by in su ran ce

co m pa ni es

. Id

. at 2 6 0

. I t r eco gn iz ed th at ev en th ou gh “ [s ]tate s ge ne ral ly cl as si fy

an nu it ie s as in su ran ce whe n de fin in g th e po wers of in su ran ce co m pa ni es an d st at e

in su ran ce reg ul at or s[ ,]

. . . in di ve rs e se tt in gs , St at e s ha ve res is te d lu m p
cl as si fic at io ns of an nu it ie s as in su ran ce.” Id

. In ad di ti on , th e Co ur t no te d th at “ th e

sa le of a pr od uc t by an in su ran ce co m pa ny do es no t in ev it a b l y r en de r th e pr od uc t

in su ran ce.” Id

.

The ba nk ru pt cy co ur t pr ov id ed a th or ou gh an al y si s o f why cas e la w c it ed by

th e Deb to r doe s not su pp or t a de te rm in at io n th at an nu it ie s are li fe in su ran ce co nt ract s.

It al so s ta te d why po li cy co ns id erat io ns an d pr in ci pl es of st at ut or y co ns tru ct io n

su pp or t th e Trus te e’s po si ti on th at §§ 37 7.3 30 an d 37 7.0 90 do no t ap pl y to an nu it ie s.

W e ag ree wi th th e b an kr up tc y co ur t’s an al y se s i n t he se res pe ct s.

C. Whe ther §§ 37 7.3 30 an d 37 7.0 90 ar e ex emptio n st a t u tes is no t
rel ev an t to ou r dec is io n

The ba nk ru pt cy co ur t an d th e pa rti es de vo te d a si gn ifi can t po rti o n of th ei r

an al y se s to th e is su e of whe th er §§ 37 7.3 30 or 37 7.0 90 i s an ex em pt io n st at ut e. In

li gh t of ou r de te rm in at io n th at §§ 37 7.3 30 an d 37 7.0 90 do no t ap pl y to th e Ann ui ty,

we do no t ad dr es s whe th er th ey are ex em pt io n st at ut es

. Howev er, in res po ns e to an

arg um en t by t he Deb to r th at th e Mi ss ou ri Co ur t of App eal s’s de ci si on in Rus se ll v.

Hea lt hmo nt of Mis so ur i, LLC

, 34 8 S.W .3d 78 4 (Mo .Ct. App

. W .D. 20 11 ), “ ne ga te s

ap pl ic at io n of st ar e de ci si s ” to th e ho ld in g in th e Eig ht h Ci rcu it cas e, Ben n v. Co le
( I n r e Ben n)

, 49 1 F.3 d 81 1 (8 th Ci r. 20 07 ), we no te th at th e pr eced en ti al effe ct of

Ben n on th is Co ur t was no t af fect ed by the Rus se ll

de ci si on

.

CONCLUSI ON

Fo r th e rea so ns set for th he rei n, we AFFIR M t he de ci si on of t he ba nk ru pt cy

co ur t.

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