Beruflich Dokumente
Kultur Dokumente
company
duly authorized to do business in the Philippines, provided the
insurance is taken on his own life and the beneficiary appointed is the minors
estate or the minors father, mother, wife, child, brother or sister.
The married woman or the minor herein allowed to take out an insurance policy
may exercise all the rights and privileges of an owner under a policy.
Characteristics of an Insurance Contract
(1) Voluntary
(2) Aleatory
(3) Consensual
(4) Conditional
(5) Personal
(6) Contract of indemnity
(7) Property in legal contemplation
(8) Unilateral
Requisites of an Insurance Contract
(1) A subject matter in which the insured has an insurable interest
(2) Event or peril insured against which may be any (future) contingent or
unknown event, past or future, and a duration for the risk thereof
(3) A promise to pay or indemnify in a fixed or ascertainable amount
(4) A consideration for the promise, known as the premium
(5) A meeting of the minds of the parties upon all the foregoing essentials
(6) Competent to enter into a contract
(7) Not contrary to law
(8) Not contrary to public policy
Elements of Insurance Contract
(1) The insured possesses an interest capable of pecuniary estimation
(insurable interest)
(2) The insured is subject to a risk of loss through the destruction or
impairment of that interest by the happening of designated perils
(3) The insurer assumes the risk of loss
(4) Such assumption of risk is part of a general scheme to distribute actual
losses among a large group of persons bearing a similar risk
(5) As consideration for the insurers promise, the insured makes a ratable
contribution (premium)
Main Classification of Insurance
(1) Insurance against loss or impairment of property interest
(2) Insurance against loss of earning power due to death, accidental injury,
ill-health, sickness, old age, or any other disability
(3) Insurance to against contingent liability to make payment against
another
Insurable Interest
Sec 10: Every person has an insurable interests in the life and death:
Life Insurance
Individual life
Group life
Industrial life
Types of
(1)
(2)
(3)
Non-Life Insurance
Marine
Fire
Casualty
(2) Insured in whose favor the contract is operative and who is indemnified
against
Who may be an Insurer
(1) Foreign or domestic insurance company or corporation
(2) Individual, partnership or association
Capacity of Party Insured
(1) Natural person
(a) Must be competent to make a contract
(b) Must possess insurable interest in the subject of insurance
(c) Not a public enemy
(2) Juridical person may take out insurance on property owned by it
Lawyers Oath
I, (state your name), do solemnly swear that I will maintain my allegiance to the
Republic of the Philippines; I will support its Constitution and obey laws as well as
the lawful orders of the duly constituted authorities therein; I will do no falsehood,
nor consent to doing of any in court; I will not wittingly nor willingly promote or
sue any groundless, false, or unlawful suits, or give aid or consent to the same; I
will delay no man for money or malice, and will conduct myself as a lawyer
according to the best of my knowledge and discretion with all good fidelity as well
as to the courts as to my clients; and I impose upon myself this voluntary
obligations without any mental reservation or purpose of evasion. So help me
God.
Persons
(1)
(2)
(3)
Quiz #2
Parties in a Contract of Insurance
(1) Insurer assumes or accepts the risk of loss and undertakes for a
consideration to indemnify the insured on the happening of a specified
contingent event
Notwithstanding the foregoing, in the event the insured does not change the
beneficiary during his lifetime, the designation shall be deemed irrevocable.
Kinds of
1.
2.
3.
Beneficiary
Insured himself
Personal representatives
Someone other than the insured
Requisites of Concealment
1. A party knows the fact which he neglects to communicate or disclose to
the other
2. Such party concealing is duty bound to disclose such fact to the other
3. Such party concealing makes no warranty of the fact concealed; and
4. The other party has not the means of ascertaining the fact concealed
Duty to Disclose to the Other Party
Sec 28 ICP: Each party to a contract of insurance must communicate to the other,
in good faith, all facts within his knowledge which are material to the contract and
as to which he makes no warranty, and which the other has not the means of
ascertaining.
Matters
1.
2.
3.
Quiz #3
Matters which a Party is not bound to Communicate
Sec 30 ICP: Neither party to a contract of insurance is bound to communicate
information of the matters following, except in answer to the inquiries of the
other:
Sec 50: The policy shall be in printed form which may contain blank spaces; and
any word, phrase, clause, mark, sign, symbol, signature, number, or word
necessary to complete the contract of insurance shall be written on the blank
space provided therein.
Any rider, clause, warranty, or endorsement purporting to be part of the contract
of insurance and which is pasted or attached to said policy is not binding on the
insured, unless the descriptive title or name of the rider, clause, warranty or
endorsement is also mentioned and written on the blank spaces provided in the
policy.
Unless applied for by the insured or owner, any rider, clause, warranty, or
endorsement issued after the original policy shall be countersigned by the insured
or owner, which countersignature shall be taken as his agreement to the contents
of such rider, clause, warranty, or endorsement.
Notwithstanding the foregoing, the policy may be in electronic form subject to the
pertinent provisions of Republic Act 8792, otherwise known as the Electronic
Commerce Act and to such rules and regulations as may be prescribed by the
Commissioner.
Quiz #4
Provisions that may void the Policy
(1) Material provision (Sec 74) entitles either party to rescind the policy
(2) Immaterial provision (Sec 75) when expressly stipulated that violated
thereof shall void the policy
Premium
Sec 77: An insurer is entitled to payment of the premium as soon as the thing
insured is exposed to the peril insured against. Notwithstanding any agreement to
the contrary, no policy or contract of insurance issued by an insurance company
is valid and binding unless and until the premium thereof has been paid, except in
the case of a life or an industrial life policy whenever the grace period provision
applies or whenever under the broker and agency agreements with duly licensed
intermediaries, a 90-day credit extension is given. No credit extension to a duly
licensed intermediary should exceed 90 days from date of issuance of the policy
Effect of nonpayment of premium
General Rule: time specified for the payment of premiums is of the essence of the
contract
When policy valid and binding notwithstanding nonpayment of premium
(1) In case of life or industrial life policy whenever the grace period provision
applies (Sec 77)
(2) Whenever under the broker and agency agreements with duly licensed
intermediaries, a 90-day extension is given (Sec 77)
(3) When there is an acknowledgment in a policy or contract of insurance of
receipt of premium even if there is a stipulation therein that it shall not be
binding until the premium is actually paid (Sec 79)
(4) When there is an agreement allowing the insured to pay the premium in
installments and partial payment has been made at the tile of loss (Makati
Tuscany v. CA)
(5) When there is an agreement to grant the insured credit extension for the
payment of the premium, and loss occurs before the expiration of the
credit term; and
(6) When estoppel bars the insurer from invoking Sec 77 to avoid recovery on
a policy providing a credit term for the payment of premiums, as against
the insured who relied in good faith on such extension
Where insured surrenders policy before termination (Sec 80[b] not applicable)
(1) Where the insurance is not for a definite period (Sec 81)
(2) Where a short period rate has been agreed upon; or
(3) Where the policy is a life insurance policy
Quiz #5
Claim -- A demand for the satisfaction of a loss suffered within the purview of an
insureds policy
Sec 85: An agreement not to transfer the claim of the insured against
the insurer after the loss has happened, is void if made before the loss
except as otherwise provided in the case of life insurance
Loss
Sec 86: Unless otherwise provided by the policy, an insurer is liable for a
loss of which a peril insured against was the proximate cause, although a
peril not contemplated by the contract may have been the remote
cause of the loss; but he is not liable for a loss of which the peril insured
against was only a remote cause
Proximate cause
That which, in a natural and continuous sequence, unbroken by any new
independent cause, produces an event and without which the event would not
have occurred
Extension of principle of proximate cause
(1) Where the loss took place while being rescued from the peril insured
against
(2) Where the loss is caused by efforts to rescue the thing insured from a peril
insured against
Loss caused by negligence of insured
(1) Where there is ordinary negligence
(2) Where there is gross negligence
When defects in notice or proof deemed waived
(1) Where the insurer writes to the insured that he considers the policy null
and void as the furnishing of the notice or proof of loss would be vain and
useless
(2) Where the insurer recognizes his liability to pay the claim
(3) Where the insurer denies all liability under the policy
(4) Where the insurer joins in the proceedings for determining the amount of
the loss by arbitration, making no objections on account of notice and
preliminary proof
(5) Where the insurer makes objection on any ground other than a formal
defect in the preliminary proof
Double Insurance exists where the same person is insured by several insurers
separately in respect to the same subject and interest (Sec 95)
Requisites of Double Insurance
(1) The person insured is the same
(2) 2 or more insurers insuring separately
(3) There is identity of subject matter