Insurance & Benefits in Divorce Flashcards
7 cards from real CDA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Insurance & Benefits in Divorce flashcards as text
Which type of life insurance allows the policy owner to change the beneficiary at any time without the current beneficiary's consent?
Answer: Revocable beneficiary policy
With a revocable beneficiary designation, the policy owner may change the named beneficiary at any time without the current beneficiary's consent.
A divorce decree orders a spouse to maintain a life insurance policy for child support security. If the spouse fails to update the beneficiary and then dies, what typically governs who receives the proceeds?
Answer: The named beneficiary on the policy form controls, regardless of the decree
Life insurance proceeds are paid to the named beneficiary on file with the insurer; a divorce decree does not automatically change the designation, making timely updates critical.
An ex-spouse wants to keep a term life insurance policy on their former spouse to secure alimony payments. What is the most legally sound approach?
Answer: Have the divorce decree order the insured to maintain the policy and name the ex-spouse as irrevocable beneficiary
The settlement agreement or decree should require the insured spouse to maintain coverage and designate the supported spouse as an irrevocable beneficiary to protect the support obligation.
Federal employees' health benefits (FEHB) after divorce — how long may a former spouse continue FEHB coverage under the Spouse Equity Act?
Answer: Until the former spouse remarries or turns 65, if enrolled within 60 days
Under the Spouse Equity Act, a former federal employee's spouse may self-pay for FEHB coverage until remarriage or Medicare eligibility, provided they enroll within 60 days of the divorce.
Which disability benefit is generally NOT divisible as marital property because it replaces lost earning capacity?
Answer: Social Security Disability Insurance (SSDI) future benefits
Future SSDI benefits are generally not divisible as marital property because they compensate for personal loss of earning capacity rather than representing an accumulated marital asset.
A client is divorcing and wants to know if the ex-spouse's VA disability compensation can be divided. What is the correct answer?
Answer: No, federal law prohibits state courts from dividing VA disability compensation as marital property
The Uniformed Services Former Spouses' Protection Act (USFSPA) explicitly excludes VA disability compensation from divisible military retired pay, and federal law preempts state division.
A divorcing couple has a joint long-term care insurance policy. What is the most important immediate concern for the divorce advisor?
Answer: Determining whether the insurer allows the policy to be split into two individual policies
Some insurers allow a joint LTC policy to be split into two individual policies at divorce; if not, coverage arrangements must be negotiated in the settlement.