Life Insurance

It is fairly rare for the Supreme Court to decide a family law case raising constitutional issues. The last noteworthy case meeting this criteria was Obergefell v. Hodges (2015) where the Court ruled same-sex couples have a constitutional right to marry. Sveen v. Melin isn’t as groundbreaking.  

In this case the Supreme Court held 8-1 that applying Minnesota’s revocation-on-divorce statute to a life insurance beneficiary designation made before the statute’s enactment does not violate the Constitution’s Contracts Clause.

Imagine this scenario:  husband buys life insurance and designates his wife as the beneficiary. A few years later the state adopts a revocation-upon-divorce statute applicable to life insurance beneficiaries which states that upon divorce the designation of a spouse as a life insurance beneficiary is revoked. A few years after that the couple divorces but the husband never changes his life insurance beneficiary. A few years after that the husband dies.

Is the ex-wife still the beneficiary?

In ...

This Act limits how life insurers can deny a policy to someone or cancel or charge different rates to policy holders based upon the applicants‘ or policy holders‘ past or future travel to lawful destinations. It makes for exceptions when the insurers‘ decisions are based upon sound actuarial principles or reasonably anticipated experience.