Report No. 82

1.7. Problem for consideration relating to the effect of nomination.-

This legal position is well understood, but the problem which arises is this. Assuming that a nomination is valid in form and in substance, and subsisting at the time of death of the insured person, and further assuming that the nominee survives the insured person, and that the insurer makes payment of the amount to the nominee, is the nominee entitled to retain the moneys so paid, or is he merely an "agent" of the insured person, as has been described in some of the judicial decisions,1 so that he must hold the money for the benefit of the estate of the insured? To put the query in different words, is the nominee entitled to regard himself as the "beneficial owner" of the amount paid, or is he merely the nominal owner of the money? This Report is concerned with that problem, and seeks to examine the present law on the subject and to recommend certain amendments which seem to be desirable in the interests of social justice.

1. Para. 2.4, infra.