licy shall be payable
though the insured may be executed for a crime is contrary to public
policy and is therefore void. The same is true of a stipulation
insuring against death by suicide while sane. It is against public
policy to allow one person to have insurance on the life of another
without his knowledge. A policy issued on a person beyond a specified
age is prohibited by statute.

What is the effect of fraud in negotiating and issuing policies? If
the company or its agent perpetrates a fraud whereby one is induced to
take out a policy, he can at his option declare it void, unless so
negligent in acting as to work an acquiescence of it. But if acting in
a proper way and time he can set up fraud as a defense in an action to
get the premium for which the contract has stipulated; or he may sue
to have the policy declared void and his premiums returned to him; or
he may bring an action against the company or its agent, or both, to
recover the damages he may have sustained by the fraud that has been
practiced on him.

On the other hand, if the insured has been wronged, the courts furnish
relief, and perhaps may set the policy aside. Mistake is a common
ground of relief; it must in all cases be clearly proved. And if a
policy is susceptible of two constructions, the ambiguity is to be
resolved in favor of the insured. As the company framed the policy all
of its provisions in its favor are strictly construed. It may be added
that the construction which the parties themselves have put upon a
contract of life insurance will be generally followed in determining
their intention. Again, the entire contract is to be construed
together for the purpose of giving effect to each clause and as
between general and specific provisions relating to the same matter
the specific provisions control.

In determining who is the beneficiary under the terms of a policy of
life insurance the courts are governed by the intentions of the
parties. They need not be named if they can be otherwise identified,
and may be designated in a separate paper prepared for that purpose.
The amount named in the policy generally fixes the liability of the
company. To obviate the wager feature, the amount of insurance
effected for a creditor on the life of his debtor ought to be limited
to the amount of the debt with interest and premiums during the
expectancy of the life insured.

The risk is presumed to begin from the date of the policy and to
continue u