Aside from the stipulations of the preceding paragraphs in this Article, the Applicant shall be deemed to have an insurable interest in the Insured if the latter gives consent to the Applicant for signing the Contract.

Article 53. Where the age of the Insured as reported by the Applicant is untruthful and the actual age of the Insured does not conform to the age limit stipulated in the Contract, the Insurer may terminate the Contract and refund the premiums to the Applicant after deducting a service charge; such is excepted if two years have passed since the conclusion of the Contract.

Where the age of the Insured is untruthfully reported by the Applicant, and such results in the payment of a premium less than the amount payable by the Applicant, the Insurer shall have the right to make correction and ask the Applicant to pay the difference, or upon the payment of insurance money, the Insurer may pay the amount of insurance money in the proportion that the actual paid premium bears to the premium payable.

Where the age of the Insured untruthfully reported by the Applicant, and such results in is the payment of a premium more than the amount payable by the Applicant, the Insurer shall refund the portion in excess to the Applicant.

Article 54. The Applicant shall not apply for personal insurance with death as a condition for making payment of insurance money for persons with no civil capacity of action, and the Insurer shall not underwrite such personal insurance.

Personal insurance insured by parents for their non-adult sons and daughters shall not be restricted by the stipulations of the preceding paragraph; provided, however, that the total amount of insurance money paid upon death shall not exceed the amount of limitation set by financial supervision and management departments.

Article 55. Contracts in which death is a precondition for making payment of insurance money shall be null and void without the written agreement of the Insured and his approval of the insured amount.

Insurance policies for Contracts with death as a precondition for making payment of insurance money shall not be assigned and mortgaged without the written agreement of the Insured.

Life insurance insured by parents for their non-adult sons and daughters shall not be restricted by the stipulations set forth in the first paragraph of this Article.

Article 56. Upon the conclusion of the Contract, the Applicant may pay a lump-sum premium or in installments as agreed in the Contract.

Where the premium is paid in installments, the Applicant shall pay the first installment upon the conclusion of the Contract and pay the remaining installments on schedule.

Article 57. With regard to payment of the premium in installments, if the Applicant, after making the first installment payment, fails to pay any remaining installment sixty (60) days after such installment becomes payable as agreed in the Contract, unless otherwise agreed in the Contract, the Contract shall cease to be effective, or the Insurer shall reduce the insured amount in the conditions and amounts as agreed in the Contract.

Article 58. With respect to the cease of effectiveness of the Contract pursuant to the provisions set forth in Article 57 hereof, after an agreement is reached through consultation by the Insurer and the Applicant, the effectiveness of the Contract may be restored after the overdue premiums are paid; if the two parties fail to reach an agreement two years after the cease of the effectiveness of the Contract, the Insurer shall have the right to terminate the Contract.

With respect to the termination of the Contract under circumstances stipulated in the preceding paragraph, if the Applicant has paid in full more than two years' premiums, the Insurer shall, in accordance with the stipulations of the Contract, refund the cash value of the insurance policy; if the Applicant has paid less than two years' premiums, the Insurer shall refund the insurance premium after deducting a service charge.

Article 59. The Insurer shall not resort to litigation in demanding payment of personal insurance premium by the Applicant.

Article 60. The Beneficiary of the Contract shall be designated by the Insured or the Applicant.

Upon designating the Beneficiary by the Applicant, the Applicant must obtain the consent of the Insured.

In the event that the Insured is a person without civil capacity for action or with limited civil capacity for action, the Beneficiary shall be designated by the guardian of the Insured.

Article 61. The Insured or the Applicant may designate one or several persons as the Beneficiary.

In the event that several persons are designated as Beneficiaries, the Insured or the Applicant may decide a priority for the receipt of benefits and percentage of the beneficial interest; if no percentages are defined, the Beneficiaries shall be entitled to equal shares of the beneficial interest.

Article 62. The Insured or the Applicant may alter the Beneficiary and shall notify the Insurer thereof in writing. The Insurer shall, upon receipt of the written notification to alter the Beneficiary sent by the Insured, endorse the insurance policy.

(For more biz stories, please visit Industry Updates)