ract before issuing the policy there must be an agreement to this
effect, and before the death of the applicant. The receipt by an agent
for the first premium, or of a note therefor, subject to the approval
of the application by the company, does not effect a contract between
insurer and insured.

Some states have enacted statutes prescribing requirements for life
insurance policies, or standard forms. Delivery to a third person for
the insured may be sufficient. The contract becomes complete when the
policy is put in the mail, postage prepaid, for delivery in due course
to the insured. Delivery to the insured for examination of course does
not effect any engagement on the part of the insurer, nor does a
delivery on condition.

It is often stated that the delivery shall not be effectual to create
a contract unless the insured is alive and in good health when the
policy is delivered and the first premium is paid. Indeed, how could
it be valid if the insurer is dead? And if the contract is with a
person other than the insured as beneficiary, it would be void on the
ground of mistake. Likewise, under such a condition, a policy does not
become effective, without a waiver, if the insured is in ill health at
the time of its delivery or payment of the premium.

Unless waived by the company, there is usually a stipulation to the
effect that the company shall not become bound until the first premium
has been actually paid and accepted by the company or its authorized
agent. But if the premium is actually paid by the agent of the company
for the insured by virtue of an agreement between them, this will bind
the company. The payment of the premium by a third person without the
knowledge of the insured does not have the same effect.

A general agent has authority to waive the stipulation, that the
policy shall not take effect until the first premium is paid, though
of course he may be restricted in this regard, but a special agent
cannot waive this stipulation; though if he acts otherwise and the
company ratifies his act, it is bound. A provision also that a policy
shall not be valid unless the premium is paid when the insured is in
good health may be waived by an agent who has authority to take
applications, collect premiums and deliver policies.

Passing to the nature of the contract, if made in violation of a
statute, or if contrary to public policy and this is known by both
parties, it is void. Thus a stipulation that a po