State RegulationsVA specificDifficulty 2/5
A Virginia man named his wife as the sole beneficiary of his life policy. They later divorced, and he never changed the beneficiary designation. When he dies, the death proceeds are payable:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Va. Code § 38.2-305(C) revokes the beneficiary provisions in favor of the former spouse upon annulment or divorce by operation of law. With the designation revoked, the former spouse is treated as having predeceased the insured, so payment follows the policy's next-in-line structure — the contingent beneficiary if one is named, or the disposition the policy provides in the absence of a surviving primary beneficiary. Updating the designation is still wise, but the statute already closes the gap.
Why the other options are wrong
- B) The designation did not survive the divorce; Va. Code § 38.2-305(C) revoked it by operation of law.
- C) The divorce court does not redistribute life proceeds; the statutory revocation under Va. Code § 38.2-305(C) simply removes the former spouse as beneficiary.
- D) The insurer neither holds the proceeds hostage nor needs a release; payment proceeds under the policy's remaining beneficiary structure per Va. Code § 38.2-305(C).
Memory hook
Ex-spouse reads as predeceased: contingent beneficiary steps up, not the ex.