L&HPennsylvaniamedium
Under Pennsylvania's Probate, Estates and Fiduciaries Code, what is the effect of a final divorce decree on a former spouse named as life insurance beneficiary, absent contrary policy or court language?
ANo effect; the designation remains fully valid.
The designation is automatically revoked as to the former spouse.
CThe designation is suspended for one year, during which the former spouse may petition the court to reinstate it.
DThe proceeds escheat to the Commonwealth.
Why this is the answer
20 Pa.C.S. § 6111.2 provides that a final divorce decree automatically revokes a beneficiary designation in favor of the former spouse, unless the policy, decree, or property settlement provides otherwise. Proceeds pass to contingent beneficiaries or the estate.
Studying for the Pennsylvania Life & Health exam?
This question comes from our L&H bank. Take a free practice test — no signup.