§2405. Insurable interest -- exception when certain institutions designated beneficiary
1. Life insurance contracts may be entered into in which the person, trust or trustee paying the consideration for the insurance
has no insurable interest in the life of the individual insured, where charitable, benevolent, educational or religious institutions,
or their agencies, are designated irrevocably as the beneficiaries thereof.
[
1993, c. 320, §3 (AMD);
1993, c. 320, §5 (AFF)
.]
2. In making such contracts, the person paying the premium shall make and sign the application therefor as owner or as settlor
of a trust, and shall designate a charitable, benevolent, educational or religious institution, or any agency thereof, irrevocably
as the beneficiary or beneficiaries of such contract. The application must be signed also by the individual whose life is
to be insured.
[
1993, c. 320, §3 (AMD);
1993, c. 320, §5 (AFF)
.]
3. Nothing in this section shall be deemed to prohibit any combination of the applicant, premium payer, owner, and beneficiary
from being the same person.
[
1969, c. 132, §1 (NEW)
.]
4. Such a contract shall be valid and binding among the parties thereto, notwithstanding the absence otherwise of an insurable
interest in the life of the individual insured.
[
1969, c. 132, §1 (NEW)
.]
SECTION HISTORY
1969, c. 132, §1 (NEW).
1993, c. 320, §3 (AMD).
1993, c. 320, §5 (AFF).
Data for this page extracted on 11/09/2009 11:20:25.