(1) Except as otherwise provided in Section 27-7-1005, the amounts contributed to a catastrophe savings account in accordance with subsection (3) of this section, interest income earned on a catastrophe savings account, and distributions from a catastrophe savings account shall be excluded from the taxable gross income of the account holder under Section 27-7-15.

(2) A catastrophe savings account is not subject to attachment, levy, garnishment, or legal process in this state, provided that no funds in an account are derived from or the result of a fraudulent conveyance making contributions to the account.

(3) The total amount that may be contributed to a catastrophe savings account shall not exceed any of the following:

(a) In the case of an individual whose qualified insurance deductible is less than or equal to One Thousand Dollars ($1,000.00), the amount of Two Thousand Dollars ($2,000.00).

(b) In the case of an individual whose qualified insurance deductible is greater than One Thousand Dollars ($1,000.00), the amount equal to the lesser of Fifteen Thousand Dollars ($15,000.00) or twice the amount of the taxpayer’s qualified insurance deductible.

(c) In the case of a self-insured individual who chooses not to obtain insurance on his or her legal residence, the amount of Three Hundred Fifty Thousand Dollars ($350,000.00), but in no event may the amount contributed exceed the value of the taxpayer’s legal residence.

(4) If a taxpayer contributes in excess of the limits provided in subsection (3) of this section, the taxpayer shall withdraw the amount of the excess contributions and include that amount in the taxable gross income of the taxpayer in the year of withdrawal.