31A-22-413 - Designation of beneficiary.
31A-22-413. Designation of beneficiary.
(1) Subject to Subsection 31A-22-412(2), no life insurance policy or annuity contractmay restrict the right of a policyholder or certificate holder:
(a) to make an irrevocable designation of beneficiary effective immediately or at somesubsequent time; or
(b) if the designation of beneficiary is not explicitly irrevocable, to change thebeneficiary without the consent of the previously designated beneficiary. Subsection75-6-201(1)(c) applies to designations by will or by separate writing.
(2) An insurer may prescribe formalities to be complied with for the change ofbeneficiaries, but those formalities may only be designed for the protection of the insurer. Theinsurer discharges its obligation under the insurance policy or certificate of insurance if it paysthe properly designated beneficiary unless it has actual notice of either an assignment or a changein beneficiary designation made pursuant to Subsection (1)(b) or Section 75-2-804. The insurerhas actual notice if the formalities prescribed by the policy are complied with, or if the change inbeneficiary has been requested in the form prescribed by the insurer and delivered to an agentrepresenting the insurer at least three days prior to payment to the earlier properly designatedbeneficiary.
Amended by Chapter 62, 2006 General Session