It is the insurability of the insured that is the linchpin of the agreement between the insurer and the policyowner. It is the termination of the insured’s life that marks the liability of the insurer to pay the face amount of the policy at death, and it is the insured’s life that determines the date of the policy’s lifetime maturity. Although the insured may not be viewed by some authorities as a party to the contract, it is the authors’ opinion that this position is less than complete. Without the insured’s consent to the insurance policy, there is not legally binding consent.
Reproduced with permission. Copyright The National Underwriter Co. Division of ALM