Report No. 66
8.54. Recommendation to add another proviso to section 39(7), Insurance Act.-
The proviso to section 39(7), Insurance Act, quoted above1 may create hardship in certain cases.2 Where, by mistake, a person creates both a trust under section 6 of the Act of 1874, and a nomination under section 39 of the Insurance Act, the question may arise, which of the two should prevail. Obviously, as a matter of policy, the trust should prevail, being more beneficial and effective so far as the wife and the children are concerned. In regard to such a situation, the rule enacted in the present proviso to section, 39(7) should not apply, and we are recommending the addition of a suitable proviso to section 39(7), in a later chapter3 of this Report.
1. Para. 8.53, supra.
2. This point is in addition to the point in para. 8.42, supra.
3. Para. 15.6, infra.