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The Life Insurance Amendment Act, 2014 came into force this month and has introduced two quite important changes to Bermuda’s Life Insurance Act, 1978 (“the Act”).
The Act now applies to all contracts made in Bermuda (unless the parties agree that some other law shall apply) and to contracts which by their terms are expressed to be governed by Bermuda law.
Also, by way of amendments to the Companies Act, 1981 and the Mortgage Registration Act 1786, it is now absolutely clear that the statutory procedures relating to assignments of life contracts, including assignments for security purposes, shall be governed exclusively by the terms of the Act and not under the Companies Act, 1981 or the Mortgage Registration Act, 1786.
The changes will be welcomed by Bermuda’s long-term insurance companies, especially those writing investment-linked life products (variable life and variable universal life contracts) for high-net-worth customers, particularly where the customer uses leverage to acquire such life insurance.
Conyers was instrumental in the drafting of this legislation and in working with the Ministry of Education & Economic Development to pilot its passage through the Bermuda Legislature.