Section 5: Individuals who die insolvent
35.Subsection (1) provides that a statutory transfer from a deceased insured takes place only where the debtor dies insolvent subject to a liability against which he or she is insured (a transfer under section 1(1)(b)). As an insured individual cannot incur liability after death, there is no need to allow for the possibility of a transfer in these circumstances (a transfer under section 1(1)(a)). Subsection (2) lists the events that must occur after an insured’s death for him or her to be regarded as having died insolvent.
