Kristen P. Raymond

Abstract

This note analyzes the status of an ex-spouse’s designation as a life insurance beneficiary when the insured fails to designate a new beneficiary following divorce. It first discusses life insurance contracts generally, emphasizing that, like other insurance contracts, they are governed by principles of contract law. This contractual foundation has led most states to uphold the insurance contract and award policy proceeds to the ex-spouse in the event of a beneficiary dispute. The note then examines the minority rule—under which divorce automatically terminates an ex-spouse’s beneficiary status—and analyzes the constitutionality of automatic revocation statutes under the Contract Clause. Next, it discusses the property settlement exception and its application under both the majority and minority rules. The note concludes by suggesting that courts adopt a two-pronged approach in adjudicating these disputes, focusing on executing the insured’s intent and ensuring the uniform application of the jurisdiction’s existing rule.

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