2018 -- H 7751

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LC005040

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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A N   A C T

RELATING TO DOMESTIC RELATIONS -- DIVORCE AND SEPARATION

     

     Introduced By: Representatives McEntee, Craven, McKiernan, and O'Brien

     Date Introduced: February 28, 2018

     Referred To: House Judiciary

     It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 15-5 of the General Laws entitled "Divorce and Separation" is

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hereby amended by adding thereto the following section:

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     15-5-30. Divorce and annulment - beneficiary revocation.

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     (a)(1) If, after a married owner makes a beneficiary designation, the owner's marriage is

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dissolved or annulled, any provision of the beneficiary designation in favor of the owner's former

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spouse or a relative of the owner's former spouse shall be revoked on the date the marriage is

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dissolved or annulled, whether or not the beneficiary designation refers to marital status. Any

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beneficiary designation herein shall be given effect as if the former spouse or relative of the

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former spouse had disclaimed the revoked provision.

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     (2) Subsection (a)(1) of this section does not apply to a provision of a beneficiary

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designation that has been made irrevocable, or revocable only with the spouse's consent, or that is

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made after the marriage was dissolved, or that expressly states that marriage dissolution shall not

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affect the designation of a spouse or relative of a spouse as beneficiary.

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     (3) Any beneficiary designation revoked solely by this section shall be revived by the

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owner's remarriage to the former spouse or by a nullification of the marriage dissolution or

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annulment.

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     (4) For purposes of this section:

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     (i) "Owner" means the spouse who designates a beneficiary to receive certain proceeds or

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benefits.

 

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     (ii) "Relative of owner's former spouse" means an individual who is related to the owner's

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former spouse by blood, adoption or affinity and who, after the divorce or annulment, is not

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related to the owner by blood, adoption or affinity.

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     (5) No person, including, but not limited to, any agent, bank, broker, custodian, issuer,

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life insurance company, plan administrator, savings and loan association, transfer agent, or trustee

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shall not be liable in damages or otherwise in a civil or criminal action or proceeding for

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distributing or disposing of property in reliance upon and in accordance with a designation of

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beneficiary, provided that both of the following apply:

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     (i) The distribution or disposition otherwise is proper;

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     (ii) The agent, bank, broker, custodian, issuer, life insurance company, plan

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administrator, savings and loan association, transfer agent, trustee, or other person did not have

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any notice of the facts that resulted in the revocation of the beneficiary designation pursuant to

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this section.

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     (b) Subsection (a) of this section shall not apply:

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     (1) If the decree of divorce or annulment contains a provision expressing an intention

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contrary to subsection (a) of this section;

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     (2) If the decedent makes the contract subsequent to the divorce or annulment;

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     (3) To the extent, if any, the contract which includes the beneficiary designation contains

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a provision expressing an intention contrary to subsection (a) of this section.

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     (4) If the decedent renames the former spouse as the beneficiary or as the person or

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persons to whom payment of a death benefit is to be made in writing delivered to the payor of the

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benefit prior to the death of the decedent and subsequent to the divorce or annulment.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO DOMESTIC RELATIONS -- DIVORCE AND SEPARATION

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     This act would revoke any beneficiary status of a spouse upon the divorce or annulment

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to the designor of the benefit.

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     This act would take effect upon passage.

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