H. B. 4506
(By Delegates Andes, Miley, Moore, M. Poling,
Lawrence, Mahan, Hamilton, Lane, Hunt,
Perry and Boggs)
[Introduced
February 16, 2010
; referred to the
Committee on the Judiciary.]
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §48-5-614, relating
to the revocation of death benefits by divorce.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new section, designated §48-5-614, to read as
follows:
ARTICLE 5. DIVORCE.
§48-5-614. Revocation of death benefits by divorce.
(a) Upon the entry of the final order of divorce, 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 a revocation under this section prior to payment.
(b) The term "death benefit", as used in this section,
includes any payment under a life insurance contract, annuity,
retirement arrangement, compensation agreement or other contract
designating a beneficiary of any right, property or money in the
form of a death benefit.
(c) This section does not apply:
(1) To the extent an order of divorce or a written agreement
of the parties provides for a contrary result as to specific death
benefits; or
(2) To any trust or any death benefit payable to or under any
trust.
(d) If this section is preempted by federal law with respect
to the payment of any death benefit, a former spouse who, not for
value, receives the payment of any death benefit that the former
spouse is not entitled to under this section is personally liable
for the amount of the payment to the person who would have been
entitled to it were this section not preempted.
NOTE: The purpose of this bill is to provide for the
revocation of death benefits upon the final order of divorce.
This section is new; therefore, it has been completely
underscored.