39.
| (1) A transfer or an assignment of a policy of song term insurance business, whether with or without consideration, may be made only by an endorsement upon the policy itself or by a separate instrument signed in either case by the transferor or by the assignor or his duly authorized agent, and attested by at least one witness, and specifically setting forth the fact of transfer or assignment. |
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| (2) No transfer or assignment of a policy of long term insurance business shall be of any effect as against the insurer, unless it is made in accordance with subsection (1). and until a notice in writing of the transfer or assignment, together with the instrument or endorsement or a copy thereof which is certified by or on behalf of the parties to the transfer or assignment to be correct, is served on the insurer at its principal place of business in Sri Lanka. |
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| (3) The date on which the notice referred to in subsection (2) is served on the insurer, shall regulate the priority of all claims under a transfer or an assignment of a policy of long term insurance business as between persons interested in the policy, and where there is more than one instrument of transfer or assignment, the priority of the claims under such instruments shall he governed by the order in which the notices referred to in subsection (2) are served. |
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| (4) Upon the receipt of the notice referred to in subsection (2). the insurer shall record the fact of such transfer or assignment to set her with the date thereof and the name of the transferee or the assignee, and shall on the request of the person by whom the notice was given, or of the transferee or assignee, grant a written acknowledgment of the receipt of such notice, and any such acknowledgment shall be conclusive evidence against the insurer that such insurer has duly received the notice to which such acknowledgment relates. |
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| (5) Subject to the terms and conditions of the transfer or assignment, the insurer shall from the date of the receipt of the notice referred to in subsection (2), recognize the transferee or assignee named in the notice as the only person entitled to benefit under the policy, and such person shall be subject to all liabilities and equities to which the transferor or assignor was subject at the date of the transferor assignment, and may institute any proceedings in relation to the policy without obtaining the consent of the transferor or assignor or making him a party to such proceedings. |
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| (6) Any rights and remedies of an assignee or transferee of a policy of long term insurance business under an assignment or transfer effected prior to the appointed date, shall not be affected by the provisions of this section. |
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| (7) Notwithstanding any law or custom having the force of law to the contrary, an assignment in favour of a person made with the condition that the interest shall pass to some other person on the happening of a specified event during the lifetime of the person whose life is insured, and an assignment in favour of survivor or survivors of a number of persons, shall be valid. |
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Sri Lanka Consolidated Acts