State RegulationsVA specificDifficulty 1/5
Under Virginia law, what effect does an annulment or divorce have on a life insurance beneficiary designation that named the former spouse?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Va. Code § 38.2-305(C) revokes by operation of law the provisions of a revocable instrument — including a life insurance beneficiary designation — in favor of a spouse when the marriage is annulled or ended by divorce. The former spouse is treated as having predeceased the insured, so the proceeds flow as though that person had died first. The practical effect is that a stale designation cannot deliver benefits to a former spouse unless the insured deliberately redesignates.
Why the other options are wrong
- A) No change-of-beneficiary form is needed; Va. Code § 38.2-305(C) revokes the designation automatically upon annulment or divorce.
- B) The insurer does not need a court order to bypass the former spouse; the revocation under Va. Code § 38.2-305(C) operates by law.
- D) The former spouse takes nothing under the revoked designation; Va. Code § 38.2-305(C) does not create a half-share entitlement.
Memory hook
Divorce rewrites the beneficiary line automatically — the ex is read out of the policy.