Cap. 16 ст. 1712KContracts of life insurancetakenout by married persons.

(1) Married persons may enter into contracts of life insurance in their own name or jointly.

(2) When taken out jointly, the life policy may only be surrendered, pledged, assigned or modified, including by the designation of a beneficiary thereunder, jointly by both spouses unless the policy is expressly undertaken -

(a) under a condition that either spouse may act without the consent of the other in all or some matters; or

(b) under the condition stated in article 1712F, and then only after the demise of a spouse, in which cases either spouse can act in all matters.

(3) When any contract of life insurance is entered into in the sole name of a person who is married and whose matrimonial property is subject to the regime of community of acquests and notwithstanding any other provisions of law:

(a) the life policy may be surrendered, pledged, assigned or modified, including by the designation of a beneficiary thereunder, by such person alone and in such case, when effected -

(i) for purposes unrelated to the patrimonial interests of the spouses, or

(ii) without the written consent of the other spouse, there shall arise a credit in favour of the other spouse equivalent to half the value of all premia paid by the policyholder; and

(b) the proceeds of the policy shall be deemed to be paraphernal property of that spouse subject to a credit in favour of the other spouse of a sum equal to half the value of all the premia paid by the policyholder.

(4) Notwithstanding the provisions of the Data Protection Act, the Professional Secrecy Act or any express clause in the contract, when a contract of life insurance is entered into by a married person jointly, both spouses shall be entitled to full information relating to all matters regarding the said contract. When entered into by one spouse, only such person and others expressly authorised in writing, shall be entitled to information about the policy.

(5) The credit referred to in sub-article (3)(a) and (b) shall enjoy a special privilege over the proceeds of the policy in the hands of the insurer in the event that the share of the community property accruing to the policyholder at time of the dissolution of the community is not sufficient to pay the value of the credit to the other spouse.