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Contents of proposals for industrial assurance policies.
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61.—(1) Every proposal for an industrial assurance policy shall, unless—
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(a) such policy is proposed to be effected on the life and on behalf of a child under the age of sixteen years, or
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(b) the person whose life is proposed to be assured under such policy is a person in whom the proposer has an insurable interest,
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contain a declaration by the person whose life is proposed to be assured under such policy that such policy is proposed to be taken out by him and that the premiums thereon will be paid by him.
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(2) Where the person whose life is proposed to be assured under an industrial assurance policy is a person in whom the proposer has an insurable interest, the proposal for such policy shall contain a statement of the nature of such interest.
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(3) Every industrial assurance company which fails to comply with or to observe the foregoing provisions of this section shall be deemed to have failed to comply with the provisions of this Act and every collector or agent of such company who takes part or is concerned in such failure shall be guilty of an offence under this sub-section and shall be liable on summary conviction thereof to a fine not exceeding five pounds.
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(4) Whenever a proposal for an industrial assurance policy contains a statement, which is not true in fact, that the person in respect of whose life such proposal has been made is not at the time of making such proposal a person on whose life any other policy has been issued by the industrial assurance company to which such proposal is made, and a policy of assurance on the life of such person is issued by such company in pursuance of such proposal, such company shall, notwithstanding that such statement is not true and that the truth of such statement is made a condition of such policy, not be relieved because such statement is not true from liability on foot of such policy.
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(5) Whenever a proposal for an industrial assurance policy consists of a form of proposal filled in, wholly or partly, by a person employed by the industrial assurance company to which such proposal is made and a misstatement which is not fraudulent has been made in some material particular by the proposer and embodied in such proposal, the following provisions shall have effect, that is to say:—
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(a) where such proposal has been filled in wholly by any person so employed, such company shall not be entitled to question the validity of the policy founded on such proposal on the ground of such misstatement so made by the proposer and embodied in such proposal, and
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(b) where such proposal has been filled in partly by any person so employed, such company shall not be entitled to question the validity of the policy founded on such proposal on the ground of such misstatement so made by the proposer and embodied in such proposal unless such statement occurs in some part of such proposal which has not been filled in by any person so employed.
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(6) Where, but for the provisions of the next preceding sub-section of this section, the validity of a policy issued by an industrial assurance company could have been questioned on the grounds of a misstatement in the proposal for such policy relating to the state of health at the date of such proposal of the person upon whose life such policy is proposed to be taken out, nothing in the said next preceding sub-section shall prevent such question being raised by such company within two years from the date of issue of such policy.
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(7) Notwithstanding the provisions of this section, whenever a proposal for a policy of industrial assurance which was effected before the commencement of this Part of this Act contains an incorrect statement of the age of the person whose life is assured under such policy, the industrial assurance company which issued such policy may so adjust the terms of the policy, or of any policy which may be issued in lieu thereof, that such terms shall conform to the terms which would have been applicable if the true age of such person had been inserted in such proposal, and accordingly no industrial assurance policy issued before the commencement of this Part of this Act shall be invalidated on the ground that the age of the person in respect of whose life such policy was issued was incorrectly stated in such policy or in the proposal for such policy.
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