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Hokitika Guardian, 2 September 1925, Page 2

A 1.1 Ft: iiisuiai.'ec policy taken out under bona-fide eireinnstancos is specially protected by I lie law in case of liankrupley. Ini! tin < lovci ninciil lias discovered that the statute needs strengthening and an amendment of the Life Insurance Ad has !>”cn introduced in charge oi Sir Mentor, Itliodc s. Clause 3 of Che Bill arises out of a roeent decision of tin* Court of Anneal in the National Hank v. the Official Assignee of the estate of Claridge. In Ihn! case, the policy-holder had transferred liis policy to I'm haul: as security for a loan, and il was !■<•!! hv the Court that ill those circumstances lm ceased I,a the policy-holder within the meaning nl Section (15 of tifio l.ife Insuratuc Ad. It follows from t ''is decision that a policy-holder v. lm so transfers nr assigns hi- p.ili;v as -neuritv h.-es the benefit sought to lm conferred on I*iill ly Sio linn I>s in the event uf his bankruptcy. The Hid remedies ibis defect and at the same time extends the nn*tectin.li to interest:- in tic* policy that may he held hv certain near pdntives. Another thinse amends the obviously imperfect provisions of Section lid of the Life llisuraime Act. IPOS. which contain an exhaustive list of classes u! protected policies. The 71 1 11 repeals tlic clause, and substitutes a general protection nt all life and accident policies that could readily ho used in I rand nf creditors. Speaking, generally, a policy is not within the protection afforded by the Act (I) if it is certainly payable at the end of a shorter t Till than seven years. (2) if it has been purchased by nivalis of a single premium. (3) if il has b >en purchased by premiums payable during a term less than flic couliniianre of the policy or less than seven years, with this exception— that every policy is protected that had actually been In force for at least seven years. The Hill will empower an insurance company to transfer a policy oi limited value on tile death of the policy-holder (not being the person insured) to ittiv person who satisfactorily establishes his right to receive the policy, without, requiring probate or letters of administration.