Page 15 - Life Assurance

/2 Legality:

The insurance contract must not violate the
requirement of insurable interest, nor may the
contract protect and encourage illegal ventures.
Obtaining insurance on life or property without
an insurable interest would violate anti wagering
statutes and could lead to arbitrary and
intentional destruction of the subject matter. In
early England private individuals were permitted
to take out insurance on the lives of public
figures, such as the king. Such a policy would
be unthinkable today.

4/3/3 Legal Capacity:

Parties to the policy of insurance must have
legal capacity to contract. There have been
instances where minor has exercised the legal right
to recover the full cost of the premium without any
adjustment for the value of insurance protection
received. This ruling follows because a minor is a
legal infant and does not have the power to make
binding contracts except for necessary items of
support actually furnished. The courts have not yet
come to the point of interpreting insurance to be a
necessary item in the support of an infant.

79 Life41/life/life 08