(1) A life policy insuring the life of anyone other than the person effecting the insurance, or the life of a person mentioned in subsection (2), shall be void unless the person effecting the insurance has an insurable interest in that life at the time the insurance is effected and the policy moneys payable, or where the policy moneys are payable in instalments, the discounted value of all future instalments under the life policy, shall not exceed the amount of that insurable interest at the time the event resulting in payment of policy moneys occurs.
(2) A person shall be deemed to have insurable interest in relation to another person if that other person is-
(a) his spouse, child or ward being under the age of majority at the time the insurance is effected;
(b) his employee; or
(c) notwithstanding paragraph (a), a person on whom he is at the time the insurance is effected, wholly or partly, dependent.
(3) In this section, "insuring the life of a person" means insuring the payment of moneys on a person's death or on the happening of any contingency dependent on the termination or continuance of his life and includes granting an annuity to commence on his death or at a time referred to in the annuity.
(4) This section shall not affect a life policy issued before 21 January 1963.