Supreme Court Finds State Law On Death Benefits Preempted

Law360, New York (June 3, 2013, 6:13 PM EDT) -- The U.S. Supreme Court held Monday that the Federal Employees' Group Life Insurance Act preempts a state statute allowing legal battles over the proper recipient of death benefits under a roughly $824 billion life insurance program for government employees.

The high court upheld a ruling by the Virginia Supreme Court finding that FEGLIA trumped Section 20-111.1 (D) of the Virginia Code, which allows a policyholder's widow or widower to sue a former spouse to win death benefits that the former spouse received under a FEGLI policy....
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