Whenever any person who receives proceeds from the sale of lottery tickets in the capacity of a sales agent becomes insolvent, or dies insolvent, the proceeds due the state lottery from that person or his or her estate shall have preference over all other debts or demands, except as follows:

(1)  Those due for necessary funeral charges;

(2)  Those due for attendants and medicine during his or her last sickness;

(3)  Those debts due to the United States;

(4)  Those debts due to this state and all state and town taxes; and

(5)  Wages of labor performed within six (6) months next prior to the death of the deceased person, not exceeding one thousand dollars ($1000) to any one person and provided further that the proceeds shall be non-dischargeable in insolvency proceedings instituted pursuant to chapters 7, (11 U.S.C. § 701 et seq.), 11, (11 U.S.C. § 1101 et seq.), and 13 (11 U.S.C. § 1301 et seq.) of the Federal Bankruptcy Act and to any act of the Congress of the United States or proceedings pursuant to the general laws of the state.