Report No. 66

5.6. Object of section 39(7).-

The combined effect of section 39(7) and the proviso quoted above, is to create a wall between a nomination under the Insurance Act and a trust under the Married Women's Property Act. The scheme is intended to avoid, as far as possible, disputes arising as to whether the arrangement made in a particular case falls under the Insurance Act or under the Married Women's Property Act. Of course where (i) the arrangement is in the form of a "nomination", but (ii),it is not expressed as made under section 39 of the Insurance Act, such a controversy can still arise. This situation could not be dealt with by a mandatory provision and the decision would, therefore, depend on the circumstances of each case.1

1. For certain recommendations as to the Insurance Act, see paras. 8.42, 8.53, 8.54 Chapter 15, infra.