Cap. 16 ст. 1712EReserved portion.

(1) The sums payable under a contract of life insurance to a designated beneficiary shall not be subject to the rules of reduction for breach of the reserved portion of the estate. Neither shall such rules apply to the sums paid by the policyholder by way of premium or additional contributions to the policy where such sums are moderate, regard being had to the estate of the policyholder. Where the sum is not moderate, the right to reduction for breach of the reserved portion of the estate shall only be exercisable against the beneficiary of the proceeds of the policy and no rights shall lie against the insurer.

(2) Unless the policyholder exempts the proceeds of an insurance policy payable to a designated beneficiary who is a co-heir from collation in terms of this Code, the sums payable shall be regulated by the applicable provisions of this Code.