Mississippi House Bill HB1098

Mississippi 2023 Regular Session

• Introduced: 1/16/23
• Refer: 1/16/23
• Failed: 1/31/23

Caption

Divorce beneficiary revocation; clarify the effective date.

Impact

If enacted, HB 1098 would significantly affect how life insurance proceeds are distributed in the event of a divorce. Specifically, it would eliminate the assumption that an ex-spouse remains a beneficiary unless certain conditions are met, such as redesignating them as a beneficiary post-divorce. This change would help protect the interests of new partners, children, or other beneficiaries, thereby aligning the payout of life insurance policies more closely with the intentions of the insured individual after a marital dissolution.

Summary

House Bill 1098 aims to amend Section 91-29-23 of the Mississippi Code of 1972, clarifying that the revocation of an ex-spouse as a beneficiary in life insurance policies applies to all beneficiary designations made by or on behalf of a decedent who passed away on or after July 1, 2020. The intent behind this bill is to establish clear guidelines regarding beneficiary designations following a divorce, ensuring that former spouses do not retain rights to insurance payouts unless explicitly stated in legal decrees.

Contention

While the bill generally seeks to protect the financial interests of those who remarry or wish to ensure that life insurance proceeds are directed to their current beneficiaries, it could also lead to disputes among heirs and beneficiaries. Some stakeholders may argue that the automatic revocation could result in unintended consequences where an insured person meant to provide for their ex-spouse's future or for dependents. Legal challenges could arise if there are contradicting beneficiary designations that were not adequately clarified at the time of the divorce.