Documentos de Académico
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Notes
By: Atty. Minda C. Gapuz
Insurance Code
PD 1460, as amended
Special Law
Not Covered: New Civil Code, Family Code
Insurance Defined
Agreement to indemnify another against
loss, damage, or liability
Arising from an unknown or contingent
event
Examples: fortuitous events, natural
disasters, and negligent acts
Characteristics:
o Risk-distributing device
o Contract of Indemnity (Property
Insurance)
o Aleatory contract (cannot be based on
wagering)
o Contract of Adhesion (Fine-Print
Rule)
o Uberrima Fides Contract (utmost
good faith, disclosure of facts)
o Consensual Contract (related with
Cognition Theory)
Elements:
o Consent, Object, Cause
1 Expanded Outline for Atty. Gapuz (Insurance)
By Kevin C. Tatco
o
o
o
o
o
Consideration/Premium
Insurable Interest
Risk of Loss
Assumption of Risk
Scheme to Distribute Loss
INSURANCE POLICY
Insurance PolicyDefined (Title 6)
Written instrument (Section 49)
Terms and conditions are set forth therein
Parties: Insurer and Insured
o Note: Public enemies may not be
insured.
Need not be signed by the insured
o Exception: When express warranties
are contained in separate documents
but part of the policy
Kinds (Section 59):
o Open (Section 60)
Value of the thing insured is not
agreed upon, to be ascertained
in case of loss
o Valued (Section 61)
Value of the thing insured is
expressed on the face of the
agreement
o Running (Section 62)
Contemplates successive
insurances
Types:
o Life Insurance (Group, Industrial Life,
Endowment)
o Non-life Insurance (Marine, Fire,
Accident, Medical, Health)
o Suretyship (Contract with an
Indemnity Agreement)
The designation of an
adulterous child as a
beneficiary is allowed.
Beneficiary
o The party who stands to be benefited
by the policy
o May not be a party to the policy
o Either revocable or irrevocable
o Note: A life insurance may be taken
out and be made payable to
whomsoever regardless of the
beneficiarys lack of insurable
interest.
Transfer of Policy
Life Insurance: may be transferred even
without the consent of the insurer
o Section 11: The insured shall have the
right to change the beneficiary he
designated in the policy, unless he has
expressly waived this right in the said
policy.
Property Insurance: may not be transferred
unless there is consent from the insurer
o Section 58: The mere transfer of a
thing insured does not transfer the
policy, but suspends it until the same
person becomes the owner of both
the policy and the thing insured.
INSURABLE INTEREST
Insurable Interest Defined
The relation, connection, and concern in a
person or property that the insured will
derive pecuniary benefit or advantage from
its preservation and suffer pecuniary loss or
damage from its destruction, injury, or
death by the happening of an event insured
against.
In short, an interest to benefit from his or
its existence.
Insurable Interest: Life Insurance
Insurable Interest must only exist at the
perfection of the contract.
o Exception: Debtor insured and heirs
(?)
Every person has insurable interest on the
life and health of (Section 10):
o Himself, spouse, and children
o Person in whom he depends for
(wholly or partially) education or
support
o Person in whom he has pecuniary
interest
o Person who has a legal obligation for
the payment of money, property, or
services
o Person upon whose life any estate or
interest vested in him depends
If there is an
acknowledgement receipt
from the premium
although premium has not
yet been paid (Section
78).
If a grace period provision
applies in case of life and
industrial life polices.
If partial payment of the
premium was accepted
and the loss occurred
before the full payment of
the premium.
If the premium is payable
on installment or term
payment basis even if the
loss occurred before the
full payment of the
premium
If an insurance agent has
already received the
premium but failed to
remit it to the head office.
If the insurer sent a
Notice of Non-Renewal
but the said notice was
not received by the
insured who paid the
premium before the loss
occurred.
6 Expanded Outline for Atty. Gapuz (Insurance)
By Kevin C. Tatco
MARINE INSURANCE
Coverage of Marine Insurance (Section 99)
Risks connected with navigation to which a
ship, cargo, freightage, profits or other
insurable interests maybe exposed to peril
during the duration of a voyage OR a fixed
time period.
Insurer is liable for loss or damage
occasioned by perils of the sea, NOT for
perils of the ship (Implied Warranty of
Seaworthiness):
o Warranty of Seaworthiness: that the
ship is reasonably fit to perform the
service and to encounter ORDINARY
perils of the voyage
o Perils of the Sea: unusual violence or
extraordinary perils of navigation
o Perils of the Ship: losses from
ordinary and natural action of the
sea, wear and tear of the ship
General Rule: Risks insured against are
against the perils o the sea
o Exception: All-Risk Policy: all risks
are covered
AVERAGE, ACTUAL, & CONSTRUCTIVE
LOSSES