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Report No. 82

5.2. Statutory framework and its background.-

A helpful discussion of the background may be quoted5-

"30. Nomination under life policies.- The primary intention of life policies is to provide for dependants. This overriding purpose is protected by the ability to arrange life policies so that when payment is due, the policy moneys are considered separate from the assured's estate. The moneys are then available for the dependants and not for any creditors; in addition, certain tax or estate duty may be avoided in respect of the proceeds of policies so arranged. The procedure for such policies is for the assured to nominate a beneficiary (or nominee) when effecting the assurance. Such beneficiary, who need not be the legal representative of the assured, alone has the right to enforce any claim in the course. The regulating legislation for nominations consists of:

(a) The Married Women's Property Act, 1882, with the earlier Married Policies of Assurance (Scotland) Act, 1880.

(b) The Friendly Societies Act, 1955, which limited the total amount for nominations to £ 800."2

1. Hansell Elements of Insurance, (1974), p. 142, para. 30.

2. See now the Friendly Societies Act, 1874.



Effect of Nomination under Section 39 of the Insurance Act, 1938 Back




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