Holley v. Schneider

The issue before us is whether a contingent beneficiary is entitled to life insurance proceeds when the primary beneficiary is disqualified because of divorce and the insurance policy provides only for the passing of a designated beneficiary’s interest when the beneficiary predeceases the insured.

I

On January 25, 1978, decedent Paul F. Powell signed a group insurance enrollment form at his place of employment. He also filled out the accompanying beneficiary card, designating his estranged wife Joyce as primary beneficiary and Sandra L. Holley, a friend, as contingent beneficiary. The Powells…