While Judy (the ex-wife) was clearly the named beneficiary, thanks to a series of conflicting federal and state laws, a dispute ensued that ultimately called into question who was the rightful recipient of the FEGLI benefits.
However, an applicable provision of the Federal Employees' Group Life Insurance Act (FEGLIA), the federal law that created FEGLI benefits, further contradicts the Virginiastatute.
Supreme Court resolved the issue for good, deciding unanimously, 9-0, to affirm the Virginia Supreme Court's decision to award Judy the FEGLI benefits.
Therefore, had Congress desired that FEGLI benefits be awarded to someone other than a person named on the beneficiary form -- say, perhaps, a current spouse -- they could have passed legislation to do so.