An extremely underutilized procedure for ensuring that insurance coverage
doesn’t get canceled while a divorce is pending, or that before
a policy lapses they must give notice to any person who is a beneficiary.
This should be a routine notice in all cases, but is the exception rather
than the rule.
CALIFORNIA FAMILY CODE
NOTICE TO INSURANCE CARRIERS NOT TO CANCEL COVERAGE
Family Code Section 2050
Upon filing of the petition, or at any time during the proceeding, a party
may transmit to, or the court may order transmittal to, a health, life,
or disability insurance carrier or plan the following notice in substantially
the following form:
"YOU ARE HEREBY NOTIFIED, PURSUANT TO A PENDING PROCEEDING, IN RE
MARRIAGE OF ____, CASE NUMBER ____, FILED IN THE SUPERIOR COURT OF THE
STATE OF CALIFORNIA, COUNTY OF ____, THAT OWNERSHIP OF, OR BENEFITS PAYABLE
UNDER, A POLICY OF HEALTH, LIFE, OR DISABILITY INSURANCE WHICH YOU HAVE
ISSUED TO ONE OF THE PARTIES TO THIS PROCEEDING, POLICY NO. ____, IS AT
ISSUE OR MAY BE AT ISSUE IN THE PROCEEDING.
YOU ARE HEREBY INSTRUCTED TO MAINTAIN THE NAMED BENEFICIARIES OR COVERED
DEPENDENTS UNDER THE POLICY, UNLESS THE TERMS OF THE POLICY OR OTHER PROVISIONS
OF LAW REQUIRE OTHERWISE, OR UNTIL RECEIPT OF A COURT ORDER, JUDGMENT,
OR STIPULATION BETWEEN THE PARTIES PROVIDING OTHER INSTRUCTIONS.
YOU ARE FURTHER INSTRUCTED TO SEND NOTICE TO THE NAMED BENEFICIARIES, COVERED
DEPENDENTS, OR OTHER SPECIFIED PERSONS UPON CANCELLATION, LAPSE, OR CHANGE
OF THE COVERAGE, OR CHANGE OF DESIGNATED BENEFICIARIES UNDER THE POLICY."