§ 3205. Insurable interest in the person; consent required;\nexceptions. (a) In this section:\n (1) The term, "insurable interest" means:\n (A) in the case of persons closely related by blood or by law, a\nsubstantial interest engendered by love and affection;\n (B) in the case of other persons, a lawful and substantial economic\ninterest in the continued life, health or bodily safety of the person\ninsured, as distinguished from an interest which would arise only by, or\nwould be enhanced in value by, the death, disablement or injury of the\ninsured.\n (2) The term "contract of insurance upon the person" includes any\npolicy of life insurance and any policy of accident and health\ninsurance.\n (3) The term "person insured" means the natural person, or persons,\nwhose life, health or bodily safety is insured.\n (b) (1) Any person of lawful age may on his own initiative procure or\neffect a contract of insurance upon his own person for the benefit of\nany person, firm, association or corporation. Nothing herein shall be\ndeemed to prohibit the immediate transfer or assignment of a contract so\nprocured or effectuated.\n (2) No person shall procure or cause to be procured, directly or by\nassignment or otherwise any contract of insurance upon the person of\nanother unless the benefits under such contract are payable to the\nperson insured or his personal representatives, or to a person having,\nat the time when such contract is made, an insurable interest in the\nperson insured.\n (3) Notwithstanding the provisions of paragraphs one and two of this\nsubsection, a Type B charitable, educational or religious corporation\nformed pursuant to paragraph (b) of section two hundred one of the\nnot-for-profit corporation law, or its agent, may procure or cause to be\nprocured, directly or by assignment or otherwise, a contract of life\ninsurance upon the person of another and may designate itself or cause\nto have itself designated as the beneficiary of such contract.\n (4) If the beneficiary, assignee or other payee under any contract\nmade in violation of this subsection receives from the insurer any\nbenefits thereunder accruing upon the death, disablement or injury of\nthe person insured, the person insured or his executor or administrator\nmay maintain an action to recover such benefits from the person\nreceiving them.\n (c) No contract of insurance upon the person, except a policy of group\nlife insurance, group or blanket accident and health insurance, or\nfamily insurance, as defined in this chapter, shall be made or\neffectuated unless at or before the making of such contract the person\ninsured, being of lawful age or competent to contract therefor, applies\nfor or consents in writing to the making of the contract, except in the\nfollowing cases:\n (1) A wife or a husband may effectuate insurance upon the person of\nthe other.\n (2) Any person having an insurable interest in the life of a minor\nunder the age of fourteen years and six months or any person upon whom\nsuch minor is dependent for support and maintenance, may effectuate a\ncontract of insurance upon the life of such minor, in an amount which\nshall not exceed the limits specified in section three thousand two\nhundred seven of this article.\n (d) In addition to any other basis under which either an employer, or\nan irrevocable trust established by one or more employers or one or more\nemployers and one or more labor unions, have an insurable interest in\nthe lives of any of its employees or retirees or those of its\nsubsidiaries or affiliated companies, an employer or such a trust shall\nhave an insurable interest in the lives of any such employees or\nretirees who are participants or who are eligible to participate, upon\nthe satisfaction of age, service or similar eligibility criteria, in an\nemployee benefit plan, established or maintained by an employer as\ndefined by the federal Employee Retirement Income Security Act of 1974,\n29 U.S.C. § 1001 e
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