icy to another for money advanced by
him to pay them; and an assignee who has promised to pay the premiums
may be liable should he fail to keep the policy alive.

Contracts of reinsurance are often made by all insurance companies. In
some states the reinsuring company becomes liable to an action by the
beneficiary named in the original policy. Where the reinsuring
company, by agreement, undertakes to reinsure the members of the other
company should they execute applications for that purpose, any member
who does this is not required to be reexamined or comply with other
conditions respecting his age or health.

A policy may be canceled or surrendered by mutual agreement. After the
death of the insured the rights of the parties become fixed, and there
can be no cancellation. During his lifetime the insured may abandon
his contract by refusing to pay the premiums, but an intention to
abandon will not be presumed, nor will the taking out of a second
policy before his failure to pay the premiums on the other establish
an abandonment. If both parties treat the contract as void, neither
can revive it without the consent of the other. As the beneficiary has
a vested or definite interest in the contract, the insured cannot, by
surrendering the policy, cut off the rights of the beneficiary without
his or her consent unless permitted to do so by the contract itself.

A surrender or cancellation of a policy may be avoided on the ground
of mutual mistake. But the insured cannot seek cancellation on the
ground that he thought it was something else when his mistake was
simply his own in not reading the release.

A policy may be rescinded whenever fraud has been practiced by either
party. Thus, should a greater premium be demanded than that stated in
the contract this would be a good reason for rescinding on the part of
the part of the insured. Likewise, if he was induced to take out the
insurance by the fraud of the company or its agent, unless he has lost
his right to rescind through inaction or negligence. Likewise, the
company may rescind for fraud practiced by the insured by
misrepresentation or other fraudulent acts concerning his age, health,
etc. Concealment of facts may and often does operate as a fraud on the
company. Says Justice McClain: "If the applicant has answered the
questions asked in the application he is justified in assuming that no
other information is desired. On the other hand if he wholly fails to
answer qu