To prevent any misunderstanding let it be empha sized that it is impossible to take out a olicy of life insurance on another without t at person knowing it, even tho an insurable interest exists. One may con duct the early negotiations without his knowledge, but the person insured will, of necessity, have to sign the application and pass the medical examination. Much of the preliminary work, all of it in fact, in the case of children, may be done by one having an insurable in terest.
An insurable interest is precisely the same thing as it is in property insurance, only in this case, it is so related to a life that the loss of that life would mean a loss measurable in money value to the person who seeks to have the life insured. The wife, for instance, has an insurable interest in the husband because he is obliged by law to support her. Parents have an 'in surable interest in the lives of the minor children be cause the parents are entitled to the wages of the child until the age of twenty-one. Where relationship ex ists coupled with either an obligation to support or even, if the obligation does not exist, where the fact of support exists, as a brother supporting a sister, there is an insurable interest. .
6. Beneficiary.—Having said so much in setting forth the insurable interest, we must now empha size that a person insuring his own life may choose as the beneficiary of a policy almost anyone he pleases. It is natural to suppose that one would never choose to carry a policy of life insurance for the benefit of another individual unless there were some good reason for doing so, either to protect the family or to protect an from whom one has secured a loan. Such a loan would be paid in due course of affairs if the individual lives, but might not be paid if he dies, and therefore the borrower may protect the lender by the policy of insurance. So while it may be stated with all frankness that, in the best sense of the word, one may choose as a beneficiary whom he will, it is obvi ous that 'if someone should be chosen as beneficiary who had no insurable interest, and that those who had an insurable interest were left unprotected, there might be occasion for some suspicion as to the neces sity of the transaction. As a matter of fact, however, no trouble arises apparently from this cause. Such few cases as have arisen have had some form of crime connected with them and furnish a special chapter in the history of criminal law. Except as showing what the individual may do to secure funds, such cases are not of much moment in life insurance.
7. Beneficiary under Canadian law.—The Cana
laws regarding beneficiaries are based upon the broad principles prevalent in most other countries. They are complicated in Canada, however, by the leg islation of Quebec proVince, where there are a large number of French speaking people. Quebec has a wives' and children's act, as has Ontario, and the other provinces have articles of their acts concerning preferred beneficiaries. Preferences are not so nu merous in Quebec as in Ontario. These are in the case of a man, his wife, his children and his wife's chil dren ; in case o a her children. The beneficiaries may be appointed either by the policy itself or by appropriation by a subsequent document or by will. A wife may insure her life for her chil dren's benefit, or appropriate a policy to them without the consent of her husband, this constituting a depar ture from the common law governing consorts. A policy in favor of a preferred beneficiary cannot be than ed wMout consent, in favor of an beneficiary. It may be assigned or surrendered with the consent of all the beneficiaries if they are of age. The proceeds of the policy cannot be seized either by the creditors of the assured or those of the beneficiary.
When preferred beneficiaries die before the assured, various circumstances must be considered in determin ing who is entitled to the money. When such bene ficiary is a child his descendants take his share whether an apportionment has been made or not. When sev eral children are beneficiaries and no apportionment is made, if any of such children predecease the assured, without issue, accretion takes place in favor of the surviving children. When the assurance is in favor of a wife and a child or children, also without appor tionment, if the wife dies before the assured, accretion takes place in favor of the child or children, and if all the children predecease the assured, accretion takes place in favor of the wife. When the sole beneficiary in whose favor the assurance exists, whether wife or child, or all the beneficiaries, predeceases or prede cease, the policy reverts to the assured, save in the case of a child leaving issue as before stated. The benefit of any share in an apportionment reverts to the assured, save in the case of a child to whom the policy was apportioned dying with issue. It is to be noted in all these cases that if the wife is the sole beneficiary, or an apportionment exists in her favor, it does not matter whether she leaves issue or not, for the policy or her share, as the case may be, reverts to her husband.