There's nothing actually illegal about it.
IF you are still the beneficiary on file for your ex-spouse then you are legally entitled to that money. If there was an updated beneficiary that lists other people as the beneficiary then you are not. On caveat is if you are listed as the beneficiary and the ex-spouse has a will in place that leaves the account to someone else, then you are not entitled.
You can name anyone as beneficiary.
No.
No, an ex-spouse can't collect a deceased husbands insurance if the first wife is listed as beneficiary even if the fist wife is now deceased. The money will go to the beneficiary's heirs.
It is the responsibility of the person holding the life insurance policy to keep the beneficiary data updated as necessary. In the scenario in the question, the ex girlfriend was listed as the beneficiary ... and will be awarded the proceeds from the policy. Unfortunately, there is little the spouse can do to stop that. The beneficiary designation is binding and will hold up in a court of law.
Generally, yes. A person must be careful to change the name of the beneficiary on their life insurance after a divorce of death of the named beneficiary. You should consult with the attorney who represented the decedent in the divorce to determine the law in your state and whether the divorce decree extinguished the ex-spouse as the beneficiary.
No, in most cases you can name whoever you would like as your beneficiary. However, as part of some divorce proceedings a court will require that your ex-spouse remain a beneficiary as part of a alimony/palimony agreement.
The person named beneficiary is the sole recipient, the ex-spouse would not have a supportable claim to any portion of the death benefit.
No, the spouse is not. The beneficiary is named. There are laws that require the spouse to sign an acknowledgement that there is life insurance that she is not the beneficiary of.
Yes, it can.
Under normal circumstances, no. A life insurance company will pay the proceeds to the named beneficiary.
Yes. When a spouse is named as a beneficiary in a will and the couple later divorces, the spouse is removed from the will by operation of law unless the testator intended to keep the now ex as a beneficiary. This does not however, operate when it comes to life insurance policies. Therefore, when an ex-spouse was accidently kept on the policy, they will take under it, which is why it is always important to keep your estate planning current and up to date with your life.