Attempting to Create Group with Duplicate Name Throws SQL Error

This bug has been reproduced on the Drupal demo at http://drupal.demo.civicrm.org/

To recreate:

1. Create a new Group with name: TEST ERROR
2. Return to Group management and rename that group to TEST ERROR ORIG
3. Create a new Group with name: TEST ERROR

Result:

Array
(
[callback] => Array
(
[0] => CRM_Core_Error
[1] => handle
)

[code] => -5
[message] => DB Error: already exists
[mode] => 16
[debug_info] => INSERT INTO civicrm_group (name , title , description , is_active , visibility , group_type ) VALUES ('TEST_ERROR' , 'TEST ERROR' , NULL , 1 , 'User and User Admin Only' , NULL ) [nativecode=1062 ** Duplicate entry 'TEST_ERROR' for key 3]
[type] => DB_Error
[user_info] => INSERT INTO civicrm_group (name , title , description , is_active , visibility , group_type ) VALUES ('TEST_ERROR' , 'TEST ERROR' , NULL , 1 , 'User and User Admin Only' , NULL ) [nativecode=1062 ** Duplicate entry 'TEST_ERROR' for key 3]
[to_string] => [db_error: message="DB Error: already exists" code=-5 mode=callback callback=CRM_Core_Error::handle prefix="" info="INSERT INTO civicrm_group (name , title , description , is_active , visibility , group_type ) VALUES ('TEST_ERROR' , 'TEST ERROR' , NULL , 1 , 'User and User Admin Only' , NULL ) [nativecode=1062 ** Duplicate entry 'TEST_ERROR' for key 3]"]
)