3 33 Mutuality
Life Insurance Contracts In Canada © 1902
< Previous > < Next >
CHAPTER III.
MUTUALITY.
Synopsis.
Mutuality is required in an insurance contract. To ascer-
tain the agreed terms the application may be looked at. An in-
surance contract may be delivered in escrow and so may an
application, and both may be delivered conditionally. Retention
of the policy and payment of premiums is cogent but not conclus-
ive evidence of assent to its terms, though after death it is con-
clusive.
An insurance contract is not enforceable if the person
insured is not in fact insurable, unless the limitation is as to age
at entry, in which case under the Ontario Insurance Act
R.S.O. 1897, c. 203, s.-s. 144-149), it is valid to the proper
amount insurable at the actual age, if the misstatement of age
is not intentional or fraudulent.
In England and probably in Canada a material alteration
in the state of health between the application and the issue of
the policy renders it unenforceable, if the condition of the
policy requires a premium to he paid, and it is not paid.
Insurers may waive irregularities.
MUTUALITY.
contracting parties never were ad idem applies in life insurance.
This is evident from the ease of Mowat v. Provident Assur-
ance Society (1900), 27 A.R. 675 (now standing for judgment
The principle that there is no contract if the minds of the
in the Supreme Court). There the plaintiff applied for a
policy with what was to be in effect a level premium policy.
