HCS SB 227 -- NONPROBATE TRANSFERS

SPONSOR:  Jacob (Burton)

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee
on Insurance by a vote of 12 to 0.

This substitute exempts life insurance policies and employee
pension plans from the provision of law that automatically
changes the beneficiary listed in a nonprobate transfer document
when the owner of the policy or plan divorces the named
beneficiary.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that many life insurance policy
owners who get divorced don't actually want the beneficiaries
listed in their policy to change automatically because of the
divorce, but that's what the current law requires.  If the owner
of the policy wants to change the beneficiary, he or she is free
to do so.  The bill merely exempts life insurance policies from
this automatic change of beneficiary after divorce.  The bill
also exempts pension plans from the same presumption, so as to
comply with the federal law, ERISA.

Testifying for the bill were Senator Jacob; and Missouri
Insurance Coalition.

OPPONENTS:  There was no opposition voiced to the committee.

Richard Smreker, Senior Legislative Analyst

Missouri House of Representatives
Last Updated November 26, 2001 at 11:47 am