February 17, 2026
Court of Appeal, Second Appellate District, Division Four
The Rule of Bagby v. Davis is that California law applies to collection actions in California courts regardless of where the judgment debtor lives, and that a voluntarily surrendered life insurance policy is treated as matured (not exempt) unless the proceeds are necessary for the debtor's support, under circumstances where the debtor seeks exemption from levy on accounts funded by surrendered insurance policy proceeds.