31A-22-413. Designation of beneficiary.
(1) Subject to Subsection 31A-22-412(2), no life insurance policy or annuity contract
may restrict the right of a policyholder or certificate holder:
(a) to make an irrevocable designation of beneficiary effective immediately or at some
subsequent time; or
(b) if the designation of beneficiary is not explicitly irrevocable, to change the
beneficiary without the consent of the previously designated beneficiary. Subsection
75-6-201(1)(c) applies to designations by will or by separate writing.
(2) An insurer may prescribe formalities to be complied with for the change of
beneficiaries, but those formalities may only be designed for the protection of the insurer. The
insurer discharges its obligation under the insurance policy or certificate of insurance if it pays
the properly designated beneficiary unless it has actual notice of either an assignment or a change
in beneficiary designation made pursuant to Subsection (1)(b) or Section 75-2-804. The insurer
has actual notice if the formalities prescribed by the policy are complied with, or if the change in
beneficiary has been requested in the form prescribed by the insurer and delivered to an agent
representing the insurer at least three days prior to payment to the earlier properly designated
beneficiary.
Amended by Chapter 62, 2006 General Session
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Last revised: Thursday, May 28, 2009