What is true about a joint life insurance contract after a couple gets divorced?

A joint life insurance contract remains enforceable after a couple gets divorced because insurable interest existed at the inception of the policy. Insurable interest refers to the financial interest that one party has in the continued life of another. At the time the policy was taken out, both parties had a vested interest in each other's lives due to their marital relationship.

Even after a divorce, the original insurable interest does not retroactively disappear. As a result, the policy remains valid unless clearly stipulated otherwise in the terms of the contract or if there are specific state laws that impact the enforceability in the event of divorce. The ongoing validity of the contract ensures that benefits can still be claimed as originally intended, ensuring financial security for beneficiaries.

While the other statements refer to various scenarios and conditions, they do not reflect the fundamental principle that insurable interest at the time of the contract’s inception lends itself to its continued enforceability post-divorce. Thus, the joint life insurance contract is legally binding based on the initial conditions under which it was established.