COMPARISON BETWEEN OLD & NEW INSURANCE CODE

PD 1460 ( Old Insurance Code)

RA 10607 ( New Insurance

Code)

Additional Provisions in the New

Insurance Code (RA 10607)

RATIONALE

Section 11:The insured shall have the right

to change the beneficiary he designated in
Section 11: The insured shall have the right to the policy, unless he has expressly waived
change the beneficiary he designated in the his right in said policy. Notwithstanding the
policy, unless he has experessly waived his right foregoing , in the event the insured does not
in said policy.
change the beneficiary during his lifetime,
the designation shall be deemed
irrevocable.

In the new Insurance code, stated that the change

of the beneficiary shall be made during the
lifetime of the insured and that the designation
during the lifetime will be deemed irrevocable.
Notwithstanding the foregoing , in the event This is due to the fact that the insureds power to
the insured does not change the beneficiary extinguish the beneficiarys interest ceases at his
during his lifetime, the designation shall be death, and cannot be exercised by his personal
deemed irrevocable.
representatives or assignees. The beneficiarys
designation shall be deemed irrevocable. His right
then becomes completely fixed. Thus the new code
expressly provide that no changes shall be made to
the policy after the death of the insured.

SECTION 12: The interest of a

beneficiary in a life insurance policy shall
be forfeited when the beneficiary is the
principal, accomplice, or accessory in
wilful bringing about the death of the
insured. In such a case, the share forfeited
shall pass on to the other beneficiaries,
unless otherwise disqualified. In the
absence of other beneficiaries, the proceeds
shall be paid in accordance with the policy
contract. If the policy contract is silent, the
proceeds shall be paid to the estate of the
insured.

In the old Insurance code the beneficiary of the

policy contract made use of the rules on intestate
succession stipulated in the New Civil Code upon
the disqualification of the beneficiary. While in the
new code Section 12 provides in itself its own
series of succession in case the beneficiary
stipulated in the policy contract is deemed
disqualified. The old code makes it impossible for
the proceeds of the insurance policy to be attached
to the insured liabilities while in the new code
since the proceeds may be attached to the estate of
the insured any liabilities of the insured may be
paid off through the proceeds of the policy
contract.

Section 12: The interest of a beneficiary in a life

insurance policy shall be forfieted when the
beneficiary is the principal, accomplice, or
accessory in the wilfully bringing about the death
if the insured; in which event, the nearest
relative to the insured shall recieve the proceeds
of said insurance if now otherwise disqualified.

In the absence of other beneficiaries, the

proceeds shall be paid in accordance with
the policy contract. If the policy contract is
silent, the proceeds shall be paid to the estate
of the insured.

Section 13

Section 13

the same provision

Section 14

Section 14

the same provision

Section 15

Section 15

the same provision

Section 16

Section 16

the same provision

Section 17

Section 17

the same provision

Section 18

Section 18

the same provision

Section 19

Section 19

the same provision

Section 20

Section 20

the same provision

Section 21

Section 21

the same provision

Section 22

Section 22

the same provision

Section 23

Section 23

the same provision

Section 24

Section 24

the same provision

Section 25

Section 25

the same provision

Submitted by:
Maria Delima Rodriguez

Submitted to :
Atty. Ariel Bacatan

Subject:
Time:
Day:

Law on Insurance
5:00 - 7:00 P.M.
Saturday