2018 -- S 2438

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LC004605

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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: Senators Nesselbush, P Fogarty, Pearson, Quezada, and Lombardi

     Date Introduced: February 15, 2018

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

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

hereby amended by adding thereto the following section:

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

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

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

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

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

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

former spouse had disclaimed the revoked provision.

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

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

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

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

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

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

annulment.

     (4) For purposes of this section:

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

benefits.

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

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

related to the owner by blood, adoption or affinity.

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

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

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

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

beneficiary, provided that both of the following apply:

     (i) The distribution or disposition otherwise is proper;

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

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

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

this section.

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

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

contrary to subsection (a) of this section;

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

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

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

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

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

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

     SECTION 2. This act shall take effect upon passage.

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LC004605

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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

to the designor of the benefit.

     This act would take effect upon passage.

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LC004605

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