Death of holder of policy not being life insured

(1) Subject to this section, where a policyholder, not being the person whose life is insured by the policy, predeceases the person whose life is so insured, and a person satisfies the company which issued the policy– (a) that he is entitled under the will or on the intestacy of the deceased policyholder, to the benefit of the policy; or (b) that he is entitled to obtain probate of the will, or to take out letters of administration of the estate, of the deceased policyholder, the company may, without requiring the production of any probate or letters of administration endorse on the policy a declaration that the person has so satisfied the company and is the holder of the policy, and thereupon that person becomes, subject to sub-section (2), the holder of the policy. (2) Sub-section (1) does not confer on a person declared to be the holder of a policy any beneficial interest in the policy which he would not otherwise have had. (3) This section applies in relation to a policy referred to in sub-section (1), whether the deceased holder dies before or after the commencement of this section. (4) This section does not apply in relation to– (a) a policy the surrender value of which, at the date of the death of the deceased holder, exceeds or exceeded two thousand dollars; or 147 (b) a policy which is one of two or more policies held by the deceased holder and issued by the same company if the aggregate of the surrender values of those policies at the date of death of the deceased holder, exceeds or exceeded two thousand dollars. (5) For the purposes of sub-section (4), the surrender value of a policy is the amount (including any amount in respect of bonus additions) that would be paid by the company issuing the policy upon its surrender.