The Law of Life Insurance in France as affected by a Recent Decision of the Supreme Court of Judicature

Extract

Never was a more complete change suddenly brought about in the laws of a nation by legislative enactment than that which has taken place this year in France in the law of life insurance, in consequence of one single decision of the Supreme Court of Judicature, Up to the present time the construction given to the contract of life insurance in this country has been quite different from what it is in England. As there is no provision of written law that relates to life insurance, it being not even so much as mentioned in the Civil or Commercial Codes, people thought themselves justified in governing it by laws and rules of their own. For instance, although it is a principle of law common to both English and French jurisprudence (we may add, to the law of all legislating nations from time immemorial) that choses in action shall necessarily devolve upon our legal representatives after our death, it has hitherto been decided almost universally by French tribunals that an exception was to be made in favour of life insurance policies. By the advocates of that doctrine, the right in the sum assured was thought never to have vested in the person effecting the policy, and the assurance monies were said to be transferred directly, i. e., omisso medio, from the assurer to the party entitled to receive the sum assured; and that sum, accordingly, would not be liable to succession duty.