40-747. Beneficiary designations; payment of funeral benefits to persons incurring expense therefor; payment of proceeds when no lawful beneficiary.
40-747
40-747. Beneficiary designations; payment of funeral benefits topersons incurring expense therefor; payment of proceeds when no lawful beneficiary.(a) The owner of a benefit contract shall have the right atall times to change the beneficiary or beneficiaries in accordance with thelaws or rules of the society unless the owner waives this right byspecifically requesting in writing that the beneficiary designation beirrevocable. A society may, through its laws or rules, limit the scope ofbeneficiary designations and shall provide that no revocable beneficiaryshall have or obtain any vested interest in the proceeds of any certificateuntil the certificate has become due and payable in conformity with theprovisions of the benefit contract.
(b) A society may make provision for the payment of funeral benefits tothe extent of such portion of any payment under a certificate as mightreasonably appear to be due to any person equitably entitled thereto byreason of having incurred expense occasioned by the burial of the member,provided the portion so paid shall not exceed $1,500.
(c) If, at the death of any person insured under a benefit contract,there is no lawful beneficiary to whom the proceeds shall be payable, theamount of such benefit, except to the extent that funeral benefits may bepaid as hereinbefore provided, shall be payable to the estate of thedeceased insured the same as other property not exempt, provided that ifthe owner of the certificate is other than the insured, such proceedsshall be payable to such owner.
History: L. 1988, ch. 154, § 10; Jan. 1, 1989.