AN ACT RELATIVE TO LIFE INSURANCE BENEFICIARIES.
Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
Chapter 175 of the General Laws is hereby amended by inserting after
section 24B, inserted by section 24 of chapter 495 of the acts of 1991, the
Section 24C. A life insurance contract may be entered into in which a
person paying the consideration for such insurance has no insurable interest in
the life of the individual insured, where a charitable, benevolent, educational
or religious institution or its agency or any other organization which
qualifies under Section 501 (c) (3) of the Internal Revenue Code is
irrevocably as the owner and beneficiary thereof.
In making such contract the person paying the premium shall make and sign
the application therefor as owner, and shall designate irrevocably a
charitable, benevolent, educational or religious institution or an agency
thereof as the beneficiary of such contract. The application
shall also be signed by the individual whose life is to be insured.
Nothing in this section shall prohibit any combination of the applicant,
premium payer, owner and beneficiary from being the same person.
Such contract shall be valid and binding among the parties thereto,
notwithstanding the absence otherwise of an insurable interest in the life of
the individual insured.