Bill 11 (Legislature 3, Session 4)

L3 S4 9830

Alberta — Bills

BILL No. 11 of 1916.

An Act respecting Beneficil1ries under Life Insurant~e Policies. (Assented to ,19tH.) HIS MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of Alberta, enacts as follows: 1. This Act may be cited as "The Life Insurance Beneficiaries Act." 2. In this Act unlel's the context otherwise requires- 1. "Insurance" means life insurance; 2. "Insurer" means and includes- (

a) Any company or corporation, or any society or association, incorporat~d or unincorporated, or any firm or partnership, or any underwriter other than a friendly society, that undertakes, or effects for valuable consideration, or agrees or offers so to undertake or effect in the province, any contract of insurance; (

b) Any corporation, society, association, or fraternity, benevolent, mutual, provident, industrial or co operative, or the like, which does not carryon insurance for profit, and which through mutual co-operation of its members furnishes to such members or to their families, relatives, dependents or other designated beneficiaries upon a specified contingency aid, protection or benefit;; 3. "Assured" means the person entering into a contract of insurance with the insurer, whether upon his own life or upon that of any other person; 4.

"Declaration" means the designation by the assured of the beneficiary under a policy of insurance or the appointment or apportionment of the insurllmce money whether such designation, appointment or apportionment is made by the contract of insurance itself or by any instrument in writing, including a will, atta,ched to or endorsed on it or in any way identifying it; 5. "Preferred beneficiary" means the wife, child, gTand child or mother of the assured; 6. "Beneficiary for value" means a beneficiary for valuable consideration other than marriage; 7.

"Maturity of the contract" means the happening of the event or the expiration of the term at which the benefit under the contract or policy accrues due; 8. "Nominee" means a designated person on whose life the annuity of another depends.

INSUHABI,E IN'fEHES'l'. 3. No contract of insurance, other than one upon the life of the assured, shall he valid unless the beneficiary shall have at the date of the contract an insurable interest in the life insured, hut no contract of annuity upon life, othenvise valid, shall be deemed invalid by reason only of the fact that the annuitant had not, at the date of the contract or at any time, an insurable interest in the life of the nominee.

(2) Nothing in this

section shall. be deemed to affect the rights of a bona fide assignee, donee or grantee of the beneficiary of a policy of insurance valid under this section, or those of his legatee, next-of-kin, or other person entitled by law. 4:. Without restricting the meaning which the term "insurable interest" now has at law, it is hereby declared that the following persons shall have an insurable interest, that is to say- (

a) A parent in the life of his child under twenty-one years of age; (

b) A husband in the life of his wife; (

c) A married woman, in the life of her husband; (

d) Apy person who has a pecuniary i;ntl~rest in the duration of another person's life, in th~ life of such other p~rson; (

e) Every person, i"11 his own lik 5. An i"11surance, heretofore eff~,cted by a parent upon the life of hi~ child under twenty-one years of ,age, and which if effepted after the passing of this Ac:t wOllld be valid by rep,son of the provisions of clause (

a) of

section 4 hereof, shall ;not be ipvalid by,reason only of the parent's want of pecunia:r:v interest in the life of such child. INSURANCE ON LIFE OF ASSURED. 6. Any person of the full age of twenty-one years may effect bona fide at his own charg~ insurance of his own person for the whole term of life or a:p.y shorter term, for the sole or partial benefit of himself or of his estate, or for the benefit of a;ny other person; and the ,insurance money may be made payable to ,any person for his own use 0,1' as trustee for another pe:r:son.

(2) If the premiums on such in,surance we,re paid by the assured with intent to defraud his creditors they shall be enti}led to receive out of the insurance money an amo,unt not exceeding the premiums ,so paid and interest thereon.

(3) The assured may designate the beneficiary by any mode of "declaration" as defined in this A~~t and may, whether the insurance money has or has not been already appointed or apportioned, from time to time, except as against a beneficiary for value and subject to the provisions of this Act as to preferred beneficiaries, by declaration, appoint or apportion the same, or alter or revoke the benefits, or add or ,substitute new beneficiaries, or divert the insurance money wholly or in part to hilmself or his estate.

(4) Where the declaration is made by will, such declara tion as against a subsequent declaration shall be deemed to have been made at the date of the will and not at the death of the testator. .

(5) Where the declaration describes the subject of it as the insuranre or the policy or policies of insurance or the insurance fund of the assured, or uses language of like import in describing it, the declaration, although there exists a declaration in favour of a member or members of the preferred claf"s of beneficiaries, shall be valid except in so far as it purports to alter or revoke such last mentioned declaration in a manner not allowed by this Act·.

(6) The assured may by the contract of insurance or by declaration or by any writing under hi~ htmd, appoint a trustee or trustees of the insurance money and may in like manner from time to time revoke such appointment and appoint a new trustee or trustees and mak~ provision for the appointment of a new trustee or trust.ees, and for the investment of the insurance money, and payment ?Dade to such trustee 01' trustees shall discharge the Insurer.

(7) Nothing in this Act shall restrict or interfere with the right to effect or assign a policy in any other manner allowed by law.

(8) Where there are several beneficiaries, if one or more of them die before the maturity of the contract and no apportionment or other disposition is subsequently made by him, the insurance shall be for the benefit of the surviving beneficiary or beneficiaries, in equal shares if more than one; and if all the beneficiaries or the sole beneficiary die before the maturity of the c:ontract and no other disposition is made by him the insurance: shall be for the benefit of the assured or his estate.

(9) Until the insurer has received the original or a copy of an instrument in writing affecting the insmance money or any part thereof, or of 11ny appointment or revocation of an appointment. of a t.rustee, the insurer may deal with, and obtain a valid di~charl~e from the assured or his b~neficiaries, or hi~ truste~lB, executors, administratprs or assigns in the same mapn:er and with the like effect as if such instrument in writing; {Lppointment, or revocation had ;not been made, but ilOthing in this subsection I'lhall affect the right of any person entitled by virtue of such instrument, appointment, or revocation to recover insurance money from the person to whom it has been paid by the insurer.

(10) Except in SO far as the sam~ are inconsistent with the provisions of this Act relating to contracts made or declared to be for the benefit of a preferred beneficiary or preferred beneficiaries, the provisions of this

section shall apply to all declarations and all contracts of insurance whether made before or after the passing of this Act. INSURANCE OF LIVES OF INFANTS. 7. A person not of the full age of twenty-one years, but of the age of fifteen years or more, may, notwith standing his minority, effect insurance on his own life for the benefit of himself or of his estate~ or fo:r· the benefit of a preferred beneficiary, or of a father, brother or sister, and may surrender Bueh instll'ance OJ' give a ndid discharge

4 for any benefit accruing or for any money payable under the contract, in like manner and to the same effect as if he were of full age.

(2) Such person shall so far as shall be consistent with the provisions of this section, have all the powers a,s to designating beneficiaries, appointing and apportioning the insurance money, altering 01' revoking the beneJits, adding or substituting new beneficiaries or diverting the insurance to himself or his e,state, which he would have if of the full age of twenty-one years, but he shall not during his minority designate, add or substitute any beneficiary not mentioned in the first subsection of this section. 8.

Where under any contract of insurance the insurance money or part thereof is for the benefit, in whole or in part, of infants, the insurer may before paying the money to which they are entitled require reasonable proof of the number, names and ages of such infants. 9. No contract of insurance hereafter effected on the life of a child shall be valid unless the age of such child at the time of insurance is at least one year.

(2) No insurer shall under a contract of insurance other than one of endowment insure or pay on the death of a child under ten years of age any sum which alone or together with any sum payable on the death of such child by any other insurer exceeds respectively: $32 if the child dies under the age of two years. 40 if the child dies under the age of three years. 48 if the child dies under the age of four years. 56 if the child dies under the age of five years. 83 if the child dies under the age of six years. 120 if the child dies under the age of seven years. 160 if the child dies under the age of eight years. 200 if the child dies under the age of ni.ne years. 260 if the child dies under the age of ten years. nor in the case of endowment insurance pay on the death of a child under ten years of age an amount exceeding the actual total of premiums paid with interest thereon at three and one-half per centum per annum, compounded yearly.

(3) Nothing in this

section contained shaH apply to such insurances as are now in force or to any insurance on the life of a child of any age where the person effecting th~ in!'lurance has a ~cuniaiy interest in th~ lifl? (4) "Vhere the age of the child at the date of the contract is le~s than ten years and the insurer has knowingly or without sufficient enquiry entered into any contl'ac~ pro hibited by this

section the premiuID,s paid thereunder shall be recovered· from tpe insurer by the person ~ying the same together with interest thereon.

(5) Every insurer undertaking or effecting insurance on the lives of children llriper ten years of age ~hall print the provisions of this section' in conspicuous type upon every circular soliciting anp upon every ~pp1icJl.tion for and every contract of such insurance and any ins~er violating any of the provisions of this subsectJon shall be liable on

summary cop.viction thereof to 'il.' penalty not exceeding two hundred dollars and costB.

5 I'RJ'WEltuED nI~NIWICIARml'. 10.

Preferred beneficiaries shall constitute a class and the provisions of thifl and the following four sections shall apply to contracts of insuranpe on the life of the assured for the benefit of pr~ferred beneficiariej3. (2) 'Where the contract of insurance or declaration provides that the insurance money, or part thereof, or the interest thereon, shall be for the benefit of a preferred beneficiary, or preferred beneficiaries, such contract or declaration shall subject to the right of t,he assured to apportion or alter as hereinafter provided, cre2Lte a trust in favour of such beneficiary or beneficiaries, and so long as any object of the trust remains, the money payable under the contract shall not be subject to the control of the assured, or of his creditors, or form part of his estate.

(3) Where two or more beneficiaries are d~signated but no apportionment is made, all of them shall share equally.

(4) Where it is stated in the contract or declaration that the insurance money or any part of it i~ for the benefit of the wife, or of the future wife, of the assured, alone, or of his wife or his future wife and some other person or persons the wife or future wife so referred to shall be deemed to be the wife living at the maturity of the cqn~ract, whether she was or wa/3 not at the date of the contract or declaration the wife of the assured.

(5) Where the wife or future wife is designated by name the provisions of the last preceding subsection shall apply, except as follows: Where at the maturity of the contract there is living a child or children of the assured, or a child or children of a deceased child of the assured, no one of whom is entitled to any benefit under the contract, the share of the deceased designated wife shall be for the benefit, in equal shares, of the wife 1ivi'n.g at the maturity of the contract, the child. or children of the assured then living and the child or children of a deceased child of the assured, who shall take, in equal shares, if more than one, the share his or their parent would have taken if living.

(6) Where it is stated in the contract or declaration that the' insurance money or any part of it is for the benefit of the assured's chHdren generally, either alone or with any other person or person!", the word "children" shall include all the children of the assured living at the maturity of the contract, whether by the then or any form,er wife or husband o~ the assured, and whether or not 'such children or any of them, were in exi13tence at the ~ate of the contract or declaration, and also the children living at the maturity of the contract of any c,hild of the assured who died before the maturity of the contract, such last mentioned children taking the share their parent would have taken if living.

(7) Whe,re an unmarried man or a widower effects the contract of insura:nce or de,c.'lares it to be for the benefit of his future wife, or of his future wife and children, or of his children, but at maturity of the contraet the assured IS still unmarried or is a widower without issue, the insurance money shall be for the benefit of the assured or form part of his estate as the case may be.

(8) 'Where an unmarried man or a widower etiects or declares tp.e cO~ltract to be for the benefit of his future wife, or future wife and children, and the intended wife il3 de!,ignated by name or is otherwi~e clearly ~slJertained in the contract, !fut the intended marrifl,gf doel3 not take place, al~ que,stions arif3ing on s\.lch contraft I3hall be p.etermined a~ in the ca~e of a beneficiary not belo:nging to the preferred cla~~.

(9) I,f o;p.e or more or all of the designa,ted preferred ben~ficiaries or a sole preferred peneficiary die before the maturi~y of the contrac~, the ~ss\Hed may, whether a,n apportionment hfts been' made or not, provide by declaration that the sp.are or shares of the person or pe:r:sons so !lying shall" be for the benefit of the assured or of his estp.te or of any other person or persons whether or not Sllch person or pprsons be~ong to the class .01 preferred beneficiaries. (

a) In the ~bsence of any declaration upder the pre ~edipg pa~t of this subsection, the share 'of such d~ce~ed ben~ficiary shall, if such deceased bfme ficiary was a child of the a~sured ap.d has left a child or children of his own surviving him, be for the benefit of such last mentioned child or childr~n who if more than one, shail take in equal shp.res. (

b) If there is no person entitled under clause (

a) of th~s subsection, the I3hare of such dece~~ed beneficiary shall, in the absence of any declaration as aforesaid, be for the benefit of the surviving, designated preferred beneficiary or beneficiaries, who if more than one, shall take in equal shares. (

c) If there is no person entitled under either of clauses of (

a) and (

b) of this l3ubsectiop, and the wife and child or children 01' the wife alone or any child or children of the assured is 01' are living at the maturity of the contract, the share of such deceased beneficiary shall, in the absence of any declaration as aforesaid, be for the benefit of such wife, child or children, or wife and child or children in equal shares if there are more than one of such persons survivlng; provided that if, in such case, any child of the assured has died before the maturity of the contract, and has left a child or children surviving at such maturity, such last mentioned child or children shall be entitled in equal shares if more than one to the share which his or their parent if living would have taken. (

d) If there il3 no person entitled under any of the above provisions of this subsection, the share of such deceased beneficiary shalf be Jar the be:nefit of the as~ured, ap.d if he be dead, such share shall form par~ of his e!3tate. 11. The .al38.ured may by a declaration vll,ry a contract or declaration previously made so a\3 to restrict, extend, transfer or limit" the benefits of the insurance to anyone or more persons of the c~a!,s of preferred beneficiaries to the e~clusion of any 01' all others of the cla[5s Of' wholly or partly to one or more for life, or any other term, with remainder to any other or others of the dass, but the

7 assured shall not except as provided by subseetion H of

section 10 revoke or alter any dispo13ition made under the provisions of this Act in favour pf !t,IlY one or more of the preferred class except in favour of some one or more persons within the preferred class so long as any of the persons of t;he preferred class in whose favdur the contract or declaration is made are living. .

(2) Where it is proved to the satisfaction of the I::iupreme Court or ,a judge thereof, upon petition, that a beneficiary, being pf the preferred class and not a b,eneficiary for value, is leading a criminal or an immoral life, and that there is no other person of the preferred class living, or sucP other person or per~ons only as are all'O leading a criminal or ,ltP- immoral life, ~he court or judge ma:y make an order amiulling the right title and interest of such beneficiary under the contract or declaration, and granting such other relief as under tp.e circ~mstfLnces appears proper; and thereupon the as(,urep. may, then or thereafter by declaration dispose of the share or interest of such beneficit1~y in such manner as he may see ;fit, and in the absence of such declaration such share shall be for the benefit of the assured or his estate as the case may be. 12.

If the assured is unable to continue to meet the premiums he may surrender the contract to jjhe insurer and accept in lieu thereof a paid up contract for such sum as the premium paid would entitle him, payable as the money insured by the original co:ntract if not surrendered would have been payable, and the insurer may accept the surrender and issue the paid up contract notwith standing any declaration in favour of a preferred beneficiary. (~) N otwith~tanding the designation of a preferred beneficiary the a,~ured may, from time ~o time, borrow from the insurer or with the consent of such beneficiary from any other person on the security of the contract such sl1ms as may be nece~sary and the same shall be applied to keep it in force, and on such terms and con ditions as m!:1y he ngreed on: and the sums so borrowed, with such interest as may be agreed on, shaH be a first lien on the contract and on all moneys p::ty::tble there under.

(3) Nothing in this

section shall authorize fmything to be dOlle to the prejudice of a beneficiary for value. 13.

Notwithstanding that thc insurance money may be payable to preferred beneficiaries or to a trustee for preferred beneficiaries the assured may, in writing, require the insurer to pay the bonnses or profits, or portions thereof, accruing under the contract, to the assured, or to apply the s::tme in reduction of the allnual premiums payable by him in such way as he may direct, or tp ::tpd snch bonuses or profits to the benefit, and the insurer shall pIty or apply such bonuses or profits as the ass'ured directs and according to the rates and rules establisl~ed by the insurer, but the insurer sp.all not be pbliged to payor ::tpply such bonuses or profits in any manner contrary to the stipulationR in tJ:t~e contrac,t or application thel:efor.

(2) Where a contract of insurance is made or de~lared to be for the benefit of one or more preferred· b('nenciRries

8 and all of them are of full age, they and t,he assured may surrender the contract or may assign or dispose of the same either absolutely or by way of security.

(3) Where such preferred beneficiaries i,nclude children or grandchildren it shall be sufficient so far as their interests are concerned if a~l then living are of full a~:e and join in the surrender or the assignment or disposal as the case may be.

(4) Whtwe a pCI'~on is entitled to a benefit only in the event of the death of another person named as a beneficiary it shall be sufficient for the purposes of this

section if such last mentioned person joins in the surrender, assignment or disposal. 14. A declaratio,n changing the preferred beneficiaries or altering, apportioning Of varying the benefits of the insur ance, may be madell(ftwith~tandip.g that by the contract of insurance or a previous declaration the insul'll.n~e money is paYjable to. a trustee for preferred beneficiariles. PAYMF]NT OF SHARES OF INFANTS. 15.

If no trustee of the insurance money is named or appointed, shares of infants may be paid to a trust company appointed as trustee by the Supreme Court or a judge thereof under the provisions of The Trust Companies Ordinance JIpon ~he applicati~n of the infants or their parents or guardian, and such payment shall be a discharge to the insurer.

(2) When insurance money not exceeding two thousand dollars is payable to the wife and children, or to the children of the assured, and one or more of the children are infants, the court may, if the assured is dead and if the widow of the assured is the mother' of such infants, appoint such widow as their guardian with or without security, and. such insurance money may be paid to her as such guardian.

(3) A trustee, subject to the terms of the tJrUst instru ment, or fl. guardian mllY invest the money received in any security in which trust. companies under the provisions of The Trust Companies Ordinance may invest trust funds, and may from time to time alter, vary and transpose the investments, and where the money is held for infants may also apply all or part of the annual income arising from tp.e share or .presumptive share of each of the infants in or towards his maintenance and education in such manner as the trustee or guardian thinks fit; and may also with the approval of the Supreme Court or a judge thereof advance to and for any of the infants notwithstanding his minority, the whole or any part of his share for his advancement or preferment in life or on his marriage. 16.

If there is no person competent to receive the share of an infant in the insurance money and the insurer admits the claim or any part thereof, the insurer at any time after the expiration of two months from the date of the admission of the claim or part thereof may obtain an order from the Supreme Court or a judge thereof for the payment of the share of the infant into court; und in such case the costs of the application shall be paid out of the share, unless the court or judge otherwise directs, and

the residue shall be paid into court pursuant to the oraer, and such payment sha1). be a sufficiep.t discharge to the insurer for the money paid; and the money sh21,lI be dealt with as the court or judge may direct.

(2) If the insurer does not within four months from the time the claim is ftdmitted eithcr pay thc same to some person competent under thi::; Act to receive the money, or pay the same into the Supreme Court, the said court or a judge thereof may upon application by someone competent to receive th~ said money or by some other person op. behalf of the infant, order the immrance money or any part thereof to be paid to any perSall competent to reeeive the same or to be pajd into court to be dealt with as the court or judge may direct, and any such payment shall be a slIfficient discharge ttl the insurer.

(3) The CQurt or judge may order t,he costs of the appli catioh and any costs incidelltal to establishing the authtirity of the party applying for the order to he liaid out of such moneys or by the insurer or otherwise as may seem just, and the court or hIdge may also order the costs of and incidental to obtaining out of court moneys voluntarily paid in by the insurer to he paid out of such moneys. CONSOLlDA't'ION OJ!' AC'l'lONS. 17.

Where several actions are brought for the recm"cry of money pa;yable under a contract of ip.suranee. the court may consolidate such actions or otherwise deal thel'ewith so that there shall be but one action for and in respect of all the claims made in such actions.'

(2) Where an action is brought to recover the share of one or more infants all the other infants entitled, or the trustees, guardians or other persons entitled to receive payment of the shares of such other infants, shall he made parties to the action, and t.he right.s of aU the infants shall be determined in one action.

(3) In all actions where several persons are int.erested in t.he insurance money the court. may apportion among the persons entitled any sum directed to be paid, and may give all necessary directions and relief. REPEAL. 18.

Chapter 49 of The Consolidated Ordinances of the Territories, 1898, is hereby repealed.

No. 11. FOUWI'H SESS ION THIRD IJEGISLATtJRE 6 GEOlW Ii; V 1 ~) 1 (l BJf ... L

An Act respecting Beneficiarief-> under Life Insurance Policies. Received and read the First time .... Second time .. Third time ....... . RON. MR. MITCHELL. EDMONTON: J. W. JE .... "RT. GOVERNMENT PRINTER. A.D. 1916 Title: 1916 (3rd, 4th) Bill 11,

An Act respecting Beneficiaries under Life Insurance Policies

Document details

Collection	Alberta — Bills
Citation	L3 S4 9830
Type	bill
Volume / chapter	L3 S4 9830
Language	en
Format	json
Source	PROVINCIAL
Identifier	ec48e998950d0d30b32e1fc292748fd24fca5317

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