Insurance

• An additional element of an insurance contract is insurable interest.
• Perfection of insurance contract follows the Cognition Theory
• A beneficiary need not have an insurable interest.
• The insurer in a life insurance contract shall be liable in case of suicide only when it is committed after the policy has been in force for a period of two (2) years from the date of its issue or of its last reinstatement, unless the policy provides a shorter period
• If the insurer granted a credit term for the payment of the premium, nonpayment of premiums will not void the insurance contract.
• The insurer is given two (2) years – from the effectivity of a life insurance contract and while the insured is alive – to discover or prove that the policy is void from the beginning or is rescindable by reason of fraud, concealment or misrepresentation of the insured or his agent
• A concealment whether intentional or unintentional entitles the injured party to rescind a contract of insurance.