Page:United States Statutes at Large Volume 76A.djvu/311

–215– -215§ 3616. Manner of payment of life insurance (a) An insurance upon life may be made payable: (1) on the death of the insured; (2) on the insured's surviving a specified period; (3) periodically as long as the insured lives; (4) otherwise contingently on the continuance or determination of life; or (5) upon such terms and conditions and subject to such restrictions as to revocation by the policyholder and control by beneficiaries as shall have been agreed to in writing by the insurer and the policyholder, or, if no terms and conditions have been agreed to by the insurer and the policyholder during the insured's lifetime, then upon such terms and conditions and subject to such restrictions as may be agreed to in writing by the insurer and the beneficiaries. (b) An agreement between the insurer and the policyholder, referred to in paragraph (5) of subsection (a) of this section, may be rescinded or amended by the parties thereto without the consent of any beneficiary therein designated unless the rights of the beneficiary have been expressly declared to be irrevocable. (c) An agreement referred to in paragraph (5) of subsection (a) of this section, made after the effective date of this Code, shall not vest in the insurer discretion as to the conditions, time, amount, manner or method of payment. The relationship between the insurer and the policyholder or beneficiaries under such an agreement shall be that of debtor and creditor and the insurer shall not be required to segregate funds so held but shall hold them as a part of its general corporate assets. § 3617. Discharge of insurer by payment Notwithstanding the provisions of section 293 of Title 8, when the proceeds of, or payments under, a life insurance policy become payable and the insurer makes payment thereof in accordance with the terms of the policy, or in accordance with the terms of a written assignment thereof if the policy has been assigned, the payment shall fully discharge the insurer from all claims under the policy unless, before the payment is made, the insurer has received, at its home office, written notice by or on behalf of another person that he claims to be entitled to the payment or to an interest in the policy. CHAPTER 91—INDEMNITY See. 3651. Definition of indemnity. 3652. Invalidity with respect to future wrongful act 3653. Validity with respect to past wrongful act. 3654. Extension of indemnity to acts of agents. 3655. Indemnity to several persons. 3656. Joint or several liability. 3657. Rules for interpreting agreement of indemnity. 8658. Reimbursement of person indemnifying other. 3059. Definition of bail. 3660. Regulation of bail. § 3651. Definition of indemnity Indemnity is a contract by which one engages to save another from a legal consequence of the conduct of one of the parties, or of another person. § 3652. Invalidity with respect to future wrongful act An agreement to indemnify a person against an act thereafter to be done, is void, if the act be known by that person at the time of doing it to be unlawful.

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