the cost of taking out and keeping up the
insurance. A partner who has advanced the capital of the business has
an insurable interest in the life of his partner. More generally any
person who invests money relying on the efforts of another to produce
a return has an insurable interest in such person's life. A surety
therefore has an insurable interest in the life of his principal; an
executor in the life of a person who has granted an annuity to the
testator; a common carrier even may insure against loss from injuries
to passengers. But the relationship between uncle or aunt, nephew and
niece and that of cousin is not sufficient to support a policy taken
by one in the life of the other.

A policy may be assigned to one who has no insurable interest if made
in good faith, and not as a cloak for the procuring of insurance by
one having no insurable interest. This rule does not prevail
everywhere, but the courts which do not accept this rule usually
protect the assignee who has paid the premiums to the amount of his
payments, while the estate of the insured takes the balance that may
come from the insurer, whenever the assignment of the policy is not
invalid. An assignment to one who has an insurable interest as
relative, creditor and the like, is always valid.

A general agent, says Justice McClain, "may bind the company by an
agreement as to rate of premiums, or other terms of the contract, even
as against the express provisions of a policy subsequently issued,
there being no negligence on the part of the insured in failing to
advise himself as to the terms of the policy; but if the want of
authority of the agent to vary the terms of the application is brought
home to the applicant, oral communications of the insured to the agent
are not to be considered in determining the validity of the insurance.
If the agent has exceeded his authority as to the terms of the
proposed contract, the company cannot reject that part which the
agent was without authority to make and enforce the rest, but must
accept or reject in toto."

Until a proposition for insurance has been accepted by the company
there is no contract. Delay in accepting an application which is
subject to approval does not effect an acceptance. There may be a
binding contract of insurance as soon as the company has accepted the
application, or on the delivery and acceptance of it by the company's
agent, when he has authority to do so. In order to complete the
cont