Divorce beneficiary revocation; clarify the effective date.

HB 974 clarifies that a divorce automatically revokes an ex-spouse as a life insurance beneficiary for all policy designations made on or after July 1, 2026. It directly affects individuals who divorce after this date and have designated their ex-spouse as a life insurance beneficiary, ensuring the ex-spouse no longer receives benefits unless the divorce decree specifically reinstates them, the insured redesignates them, or the beneficiary is designated for a child. The bill specifies that insurers must pay proceeds to the named alternative beneficiary or the insured's estate if the ex-spouse's designation is invalid under this rule. This change applies only to designations created on or after the effective date, not to prior policies.