Bermuda's Life Insurance Amendment Act 2014 (Amendment Act) became operative on 24 June 2014 and makes two key amendments to the Life Insurance Act 1978 (Principal Act).
The Amendment Act amends the Principal Act to allow life insurance contracts made in Bermuda (unless the parties agree that some other law shall apply) and life insurance contracts governed by Bermuda law to be governed by the Principal Act.
The Amendment Act also makes consequential amendments to the Companies Act 1981 and the Mortgage Registration Act 1786 to expressly provide that the procedure for transferring life insurance contracts (to which the Principal Act applies), including transfers for secured borrowing purposes, shall be governed exclusively by the Principal Act.
The amendments will be welcomed by Bermuda's long-term insurers as they clarify the legislation governing transfers of life insurance contracts and related security.
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