Trustees may be appointed by the assured to receive the policy moneys in trust for the beneficiaries, as in the other provinces. If no trustees are appointed, payment is made to the beneficiary or beneficiaries named. The shares of minors, if there is no trustee, are paid to the executors of the will of the assured, and if there is none, to their tutors (or guardians) .
Another feature of Quebec law is peculiar and that is the right to change the beneficiary. If the benefici ary is a preferred beneficiary, wife or child, the assured may make whatever changes he likes within the family circle. In that respect Quebec does not differ from the other provinces of Canada, but if the beneficiary is outside this circle—father, brother or stranger—it depends on whether or not thaeneficiary has accepted the contract made in his favor. There is nothing in the law of insurance regulating this point, so as insur ance is a contract we fall back on the common law of contract. Article 1029 of the Canadian Code says : A party may stipulate for the benefit of a third person, when such is the condition of the contract which he makes for himself, or of a gift which he makes to another ; and he who makes the stipulation cannot revoke it if the third person have signified his assent to it.
Quebec has not the vested interest doctrine which prevails in the majority of the States, but if a beneficiary has accepted the contract made in his favor it is irrevocable, and a new beneficiary cannot be sub stituted without his consent. It is therefore always necessary to inquire whether or not the beneficiary has accepted. The Canadian courts have decided that acceptance by a beneficiary need not be in writing at all, but may be made tacitly. That is to say, his con duct and actions may be sufficient to constitute accept iince. The only safeguard for the company is to take such precautions as it can. For instance: Require a solemn declaration from the assured, stating that the beneficiary named in the policy did not know that he was made a beneficiary, and that he never had possession of the policy which always re mained in the hands of the assured; and if the assured cannot say that the beneficiary did not know of his having been so appointed, to at least ask him for a sol emn declaration, stating that the beneficiary never ac cepted nor signified his acceptance of the benefit of the stipulation, either expressly or tacitly. Another arti
cle of the Canadian Code (1145) says that payment made in good faith to the ostensible creditor is valid, altho it is afterward established that he is not the right ful creditor; so where such a solemn declaration is made it is understood that a new beneficiary, assuming that he survive the assured and no further change be made, is, under the circumstances, an ostensible cred itor, and payment to him will free the insurance com pany.
These few notes will give a broad idea of the some what complicated legislation in Quebec province. Its interpretation has exercised the talents of the best legal men in Canada, including Mr. J. Armitage Ewing, K. C., of Montreal, to whom the authors are indebted for the foregoing information on the subject.
8. Report of the Insurance De partment of the State of New York giving the statis tics of companies doing business in that state as of December 31st, 1915, will, because of its authoritative character, give some information which will enable us to appreciate the stupendous business represented by life insurance.
(a) The assets were $4,850,000,000; representing an increase in one year of $213,000,000.
(b) The liabilities were $4,586,000,000, this not including special funds of $109,000,000, and leaving a surplus of $154,000,000.
(c) The income was $925,000,000, an increase of $51,000,000 over the preceding year.
(d) The disbursements were $713,000,000, which was an increase of $69,000,000 as compared with the preceding year. The disbursements were roughly subdivided as follows: Claims $288,000,000; Lapsed and Surrendered Policies $113,000,000; Divi dends $106,000,000; Commissions $57,000,000; Sala ries and Medical Examiners' Fees $58,000,000.
(e) The record of policies terminated for the year is of interest as it shows the different causes. The rec ord was as follows: Deaths 77,000; maturity 32,000; expired 97,000; surrender 185,000; lapsed 262,000.