3 110 Bonuses Profits Surrenders Assignments And Loans
Life Insurance Contracts In Canada © 1902
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CHAPTER XVII.
BONUSES, PROFITS, SURRENDERS, ASSIGNMENTS AND LOANS.
Synopsis.
The insured has apparently the right to direct the applica-
tion of bonus additions to the policy and profits unless in opposi-
tion to the terms of the policy or applicationnotwithstanding a
declaration in favour of a beneficiaryunless, perhaps, the
declaration is wide enough to cover them.
The insured may surrender if he cannot keep up the policy,
or may borrow, notwithstanding the rights of preferred bene-
ficiaries.
The rights of a person advancing premiums to keep the
policy on foot are considered, and the mode of surrender and
assignment and the parties to it are pointed out.
BONUSES, PROFITS, SURRENDERS, ASSIGNMENTS AND LOANS.
The insured has, notwithstanding the limitations imposed
on him in favour of beneficiaries the right to deal with bonuses
or profits, and to arrange for the changing of the plan of insur-
ance if he is unable to continue it on the original basis, and he
may borrow to keep it alive.
Section 161 reads:(1) The insured may in writing
require the insurer to pay the bonuses or profits, or portions
thereof, accruing under the contract of insurance, to the
assured, or to apply the same in reduction of the annual
premiums payable by the assured, in such way as he may
direct ; or to add the said bonuses or profits to the benefit :
and the insurer shall pay or apply such bonuses or profits
as the assured directs ; and according to the rates and rules
established by the insurer; Provided always that the
insurer shall not be obliged to pay or apply such bonuses or
profits in any other manner than as lawfully stipulated in
the contract or the application therefor. This section shall
