142                                 Laws of Maryland                          [Ch. 47

or his personal representatives, or to a person having, at the time
when such contract was made, an insurable interest in the individual
insured.

(b)  If the beneficiary, assignee or other payee under any contract
made in violation of this section receives from the insurer any bene-
fits thereunder accruing upon the death, disablement or injury of
the individual insured, the individual insured or his executor or ad-
ministrator, as the case may be, may maintain an action to recover
such benefits from the person so receiving them.

(c)  "Insurable interest'⁹ as used in this section and in Section 170B
includes only interests as follows:

(1)  In the case of individuals related closely by blood or by law,
a substantial interest engendered by love and affection; and

(2)  In the case of other persons, a lawful and substantial eco-
nomic interest in having the life, health or bodily safety of the indi-
vidual insured continue, as distinguished from an interest which
would arise only by, or would be enhanced in value by, the death,
disablement or injury of the individual insured.

(3)  An individual heretofore or hereafter party to a contract or
option for the purchase or sale of an interest in a business partner-
ship or firm, or of shares of stock of a close corporation or of an in-
terest^ in such shares, has an insurable interest in the life of each
individual party to such contract and for the purposes of such con-
tract only, in addition to any insurable interest which may otherwise
exist as to the life of such individual.

170B. (Application for Insurance Required.) (a) No life insurance
policy or accident and sickness insurance policy, except those con-
tracts falling into the group life insurance or into the group or the
blanket or the transportation ticket accident and sickness insurance
categories as defined in this Article and except for liability contracts
that have attached to them supplementary accident and sickness
coverage riders or endorsements, shall be made or effectuated unless
at or before the making of such contract the individual insured, be-
ing of competent legal capacity to contract therefor, applies therefor,
or consents in writing thereto; except in the following cases:

(1)  A spouse may, by written application, effectuate such insur-
ance upon the other spouse.

(2)  Any person having an insurable interest in the life of a minor,
or any person upon whom a minor is dependent for support and
maintenance, may, by written application, effectuate such insurance
upon the life of a minor.

(S) Any person having an insurable interest in the life of a person
who is legally incompetent to consent to such insurance may, upon
written application, effectuate such insurance upon the life of such
person.

(b) If the application contains an agreement whereby the insurer
is authorized to issue a policy other than that applied for, or to amend
the application, which amendment is to be ratified by the acceptance
by the applicant of the contract as amended, such agreement must
contain language substantially as follows: "Except that no change in