                                 CODE OF VIRGINIA

COURT MAY DECREE AS TO MAINTENANCE OF LIFE INSURANCE POLICY (§ 20-107.1:1)

A. Upon entry of a decree providing for (i) the dissolution of a marriage, (ii)
a divorce, whether from the bond of matrimony or from bed and board, or (iii)
separate maintenance, where an order for spousal support or separate maintenance
has been entered by the court, the court may order a party to (a) maintain any
existing life insurance policy on the insured party&#8217;s life that was
purchased during the marriage, is issued through the insured&#8217;s employment,
or is within effective control of the insured, provided that the party so
ordered has the right to designate a beneficiary and that the payee has been
designated as a beneficiary of such policy during the marriage and the payee is
a party with an insurable interest pursuant to subsection B of &#xA7; 38.2-301;
(b) designate the other party as beneficiary of all or a portion of the death
benefit of such life insurance for so long as the insured party so ordered has
an obligation to pay spousal support to the other party, provided that the party
so ordered has the right to designate a beneficiary and that the payee has been
designated as a beneficiary of such policy during the marriage and the payee is
a party with an insurable interest pursuant to subsection B of &#xA7; 38.2-301
in accordance with the terms of the policy; (c) allocate the premium cost of
such life insurance between the parties, provided that all premiums shall be
billed to the policyholder; and (d) order the insured party to execute all
appropriate forms or written consents to require the insurer to provide
information to the party beneficiary as to the good standing of the policy and
the maintenance of that party as beneficiary to the extent required by the order
entered pursuant to this section. Any obligation or requirement under such an
order shall cease upon the termination of the party&#8217;s obligation to pay
spousal support or separate maintenance.

B. In making a determination under subsection A, the court shall consider:

   1. The age, health, and insurability of the insured party;

   2. The age and health of the payee spouse;

   3. The cost of the life insurance policy;

   4. The amount and term of the award of spousal support or separate
   maintenance;

   5. The prevailing insurance rates at the time of the order;

   6. The ability of either spouse to pay the premium cost of the life insurance;
   and

   7. Such other factors as the court deems necessary or appropriate to consider
   in order to arrive at a fair order.

C. Upon motion of either party, any order entered pursuant to this section may
be modified upon a material change of circumstances, including a change in
marital status of the payor spouse, and in consideration of the factors set
forth in subsection B. This provision shall not permit the change in marital
status of the payor spouse to be considered as a factor under &#xA7; 20-107.1 or
considered a material change in circumstances in any proceeding related to the
modification of spousal support.

D. Nothing in this section shall be construed to create an independent cause of
action on the part of any beneficiary against the insurer or to require an
insurer to provide information relating to such policy to any person other than
the policyholder without the written consent of the policyholder or unless
ordered by the court.

E. Nothing in this section shall be construed to require an insurance company to
renew or reinstate any insurance policy other than as provided in such insurance
policy.

F. In the event a group policy issued by an employer that is subject to a court
order pursuant to this section is terminated or canceled by the employer or
there is an involuntary change in employment by the payor causing the policy to
no longer be in effect, such circumstances shall not be the basis of any finding
of contempt against the payor arising out of an order entered pursuant to this
section.

G. This section shall not apply to any second to die insurance policies on the
lives of the payor and payee.

H. In the case of a term life insurance policy that has the ability to convert
to a permanent policy, the court shall not impose an obligation to pay for such
a conversion.

HISTORY: 2017, c. 797.