Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
Chapter 175 of the General Laws is hereby amended by inserting after section 24B, inserted by section 24 of chapter 495 of the acts of 1991, the following section:-
Section 24C. A life insurance contract may be entered into in which a person paying the consideration for such insurance has no insurable interest in the life of the individual insured, where a charitable, benevolent, educational or religious institution or its agency or any other organization which qualifies under Section 501 (c) (3) of the Internal Revenue Code is designated irrevocably as the owner and beneficiary thereof.
In making such contract the person paying the premium shall make and sign the application therefor as owner, and shall designate irrevocably a charitable, benevolent, educational or religious institution or an agency thereof as the beneficiary of such contract. The application shall also be signed by the individual whose life is to be insured.
Nothing in this section shall prohibit any combination of the applicant, premium payer, owner and beneficiary from being the same person.
Such contract shall be valid and binding among the parties thereto, notwithstanding the absence otherwise of an insurable interest in the life of the individual insured.