L&HMIhard
A Michigan life policy is governed by an employer's ERISA welfare plan. The participant divorces but never updates the beneficiary form naming the former spouse. Under controlling law, who is most likely to receive the death benefit?
AThe participant's estate under MCL 700.2807
The former spouse, because ERISA preempts the MI EPIC revocation-on-divorce rule
CThe contingent beneficiary, because divorce voids the primary designation under EPIC
DThe participant's parents as next of kin
Why this is the answer
MCL 700.2807 would revoke the former spouse's designation on an individual policy. For ERISA-governed plans, however, U.S. Supreme Court precedent (Egelhoff line) preempts state revocation-on-divorce statutes, so the plan administrator pays the named beneficiary on the form.
Studying for the MI Life & Health exam?
This question comes from our L&H bank. Take a free practice test — no signup.