Insurance Act No.54 of 2005 - Vanuatu Financial Services ...

68 Validity of an insurance policy(1) An insurance policy entered into before or after the commencement of this Act, is notvoid only as a result of a contravention or non-compliance with a provision of this Act orany other Act.(2) If a person has entered into an insurance policy with an insurer who under this Act wasprohibited from entering or not authorised to enter into the policy, the person or theCommission may cancel the policy by written notice to the insurer.(3) If the policy has been cancelled under subsection (2), the person is in the same position asif the policy had been cancelled because of a breach of contract by the insurer.(4) An insurance policy entered into before the commencement of this Act is not void onlyfor the reason that:(a)(b)this Act prohibits policies of that kind; orthe policy contains terms prohibited by this Act.(5) For the purposes of the validity of an insurance policy, payment of a premium under thepolicy to a licensed insurance agent or insurance broker is taken to be payment to theinsurer under the policy.69 Protection of policy benefits under certain life policies(1) Policy benefits provided or to be provided to a person under a life, disability or healthpolicy in which the person or the person’s spouse is the life insured and that has been inforce for at least 3 years, or the assets acquired exclusively with those policy benefits:(a)(b)during the person’s lifetime are not liable to be attached or subjected to ajudgment of a court or to form part of the person’s insolvent estate; andon the person’s death are not available to pay the person’s debts, if the person issurvived by a spouse, child, stepchild or parent.(2) Subsection (1) does not apply to a debt secured by the policy.(3) Subsection (1) applies:(a) to assets acquired solely with the policy benefits, for 5 years after the policybenefits were provided; and(b)only to policy benefits and assets so acquired up to an amount specified by theCommission.53