S.B. 189 Enrolled

BENEFICIARY DESIGNATION OF FORMER SPOUSE
1999 GENERAL SESSION
STATE OF UTAH
Sponsor: Karen Hale
AN ACT RELATING TO HUSBAND AND WIFE; PROVIDING FOR THE AUTOMATIC
REVOCATION OF ANY BENEFICIARY DESIGNATION FOR THE FORMER SPOUSE
UPON FINAL DECREE OF DIVORCE; AND PROVIDING FOR EXCEPTIONS.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
31A-22-413, as last amended by Chapter 204, Laws of Utah 1986
ENACTS:
30-3-7.5, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 30-3-7.5 is enacted to read:
30-3-7.5. Revocation of death benefits by divorce or annulment.
(1) Upon the entry of a decree of annulment or divorce on and after May 3, 1999, any
revocable beneficiary designation contained in a then existing written contract owned by one party
that provides for the payment of any death benefit to the other party is revoked. A death benefit
prevented from passing to a former spouse by this section shall be paid as if the former spouse had
predeceased the decedent. The payor of any death benefit shall be discharged from all liability upon
payment in accordance with the terms of the contract providing for the death benefit, unless the
payor receives written notice of the entry of decree under this section prior to payment.
(2) The term "death benefit" includes any payments under a life insurance contract, annuity,
qualified retirement plan or individual retirement, compensation agreement, or other contract
designating a beneficiary of any right, property, or money in the form of a death benefit.
(3) This section does not apply:
(a) to the extent a decree of annulment or divorce from the bond of matrimony, or a written
agreement of the parties provides for a contrary result as to specific death benefits; or
(b) to any trust or any death benefit payable to or under any trust.

Section 2. Section 31A-22-413 is amended to read:
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 30-3-7.5 . 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.

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