(a) The owner of a benefit contract has the right at all times to change the beneficiaries in accordance with the laws or rules of the society, unless the owner waives this right by specifically requesting in writing that the beneficiary designation be irrevocable. A society may, through its laws or rules, limit the scope of beneficiary designations and shall provide that no revocable beneficiary shall have or obtain any vested interest in the proceeds of any certificate, until the certificate has become due and payable in conformity with the benefit contract.

Terms Used In Tennessee Code 56-25-402

  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Benefit contract: means the agreement for provision of benefits authorized by §. See Tennessee Code 56-25-104
  • Certificate: means the document issued as written evidence of the benefit contract. See Tennessee Code 56-25-104
  • Contract: A legal written agreement that becomes binding when signed.
  • Laws: means the society's articles of incorporation, charter, constitution and bylaws, however designated. See Tennessee Code 56-25-104
  • Person: means any association, aggregate of individuals, business, company, corporation, individual, joint-stock company, Lloyds-type organization, organization, partnership, receiver, reciprocal or interinsurance exchange, trustee or society. See Tennessee Code 56-16-102
  • Rules: means all rules, regulations or resolutions adopted by the supreme governing body or board of directors that are intended to have general application to the members of the society. See Tennessee Code 56-25-104
  • Society: means fraternal benefit society, unless otherwise indicated. See Tennessee Code 56-25-104
(b) A society may make provision for the payment of funeral benefits to the extent of the portion of any payment under a certificate as might reasonably appear to be due to any person equitably entitled thereto by reason of having incurred expenses occasioned by the burial of the member.
(c) If, at the death of any person insured under a benefit contract, there is no lawful beneficiary to whom the proceeds are payable, the amount of the benefit, except to the extent that funeral benefits may be paid as provided in this section, shall be payable to the personal representatives of the deceased insured; provided, that if the owner of the certificate is other than the insured, the proceeds shall be payable to the owner.
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