Irrevocable designation of beneficiaries

(1) Subject to sub-sections (4) and (5), a policyholder may, in writing, by declaration filed with the insurance company at the time the policy is taken out designate irrevocably a named person to be beneficiary under the policy and, in such a case138 (a) the policyholder subject to section 115, may not during the life-time of the named beneficiary alter or revoke the designation without the consent of the beneficiary; and (b) the moneys payable under the policy are not subject to the control of the policyholder or the creditors of the policyholder and do not form part of his estate. (2) Notwithstanding sub-section (1)(a), consent of the beneficiary is not required where the beneficiary is a former spouse and the marriage ended in divorce or, as the case may be, the common law union has come to an end. (3) Where the insured purports to designate a beneficiary irrevocably in a declaration that has not been filed with the insurer as required by sub-section (1) or in a will, the designation has the same effect as if the insured had not purported to make the designation irrevocable. (4) An irrevocable designation may only be made by a policyholder in favour of a spouse or to a child, including a child born out of wedlock. (5) A designation shall not be regarded as irrevocable unless the words creating the irrevocable designation are clear and unequivocal and are prominently displayed on the proposal form and signed by the policyholder and there is sufficient evidence that it was explained to the policyholder that the designation was