insurance law (ra 10607)

• insurer - assumes risk of loss; undertakes for consideration to indemnify insured
• insured - loss is occasion for thr payment of insurance proceeds by insurer
• elements of insurance

  • insurer = insurable interest
  • insurer = assumes risk
  • insured = subject to risk of loss
  • insured = pays premium
  • assumption of risk is part of general scheme to distribute losses
• characteristics

  1. risk-distributing
  2. contract of adhesion (ready-made)
  3. aleatory - no equiv [premiums are not recovery]
  4. contract of indemnity [recovery less than/equal to loss]
  5. requires good faith
  6. personal - non transimissible
  7. reciprocal
  8. conditional
  9. voluntary
  10. executory
• kinds of insurance

  • life
  • marine
  • fire
  • suretyship
  • casualty
  • micro-insurance
  • variable insurance
• life insurance - indiv, group, industrial
• marine insurance

  • inland
  • precious metals
  • facilities (bridges)
• fire insurance - fire, windstorm, lindol, lightning, tornado, etc
• suretyship

  • debtor is solidarily liable
  • doing business
  • issues bonds
• casualty

  • accidents
  • employer's liab
  • motor vehic
  • plate glass
  • theft/burglar
  • personal accid
  • health ins
• mico-ins

  • for the poor
  • premiums = not exceed 7.5% of daily SMW
  • max sum of benefits: <= x smw
• variable insurance - with separate porfolios consist of instruments and inv funds
• insurable interest - pecuniary interest - right/property
• who has insurable interest

  life
• insurable interest of life

  • himself, spouse, anaks
  • any who depends for educ/support
  • under legal obli to him
  • estate/interest vested in him
• change of interest

  GR: suspends insurance to equiv extent; any prohibition = void
• xpn to change of interest = LAW OPS
• perfection of insurance contract

  gr: no premiums = not binding

  xpn: binding

  • grace period applies
  • credit ext
  • payment in installment
  • insurer granted credit term
  • parties barred by estoppel
• cancellation/rescission of onsurance (by insurer)

  • for property:
  • nonpaym of prem
  • convict of crime
  • discover fraus
  • discover willful/reckless acts
  • physical changes
  • discovery of other ins coverage (insurance > value of property)
• other grounds for cancellation

  1. concealment - neglect to comm
  2. misrepre - oral/written
  3. warranty breach - past/future
• claims of settlement

  life insurance

  1. upon maturity - immediate
  2. death = 60 days after with proof
• claims of settlement

  property ins

  • upon receipt - 30 days to ascertain loss
  • proof on 60 days
  • payment - 90 days

  prescriptive period

  • stipulated - 1 year
  • not - 10 years
• subrogation - automatic; ensures insurer
• no right of subrogation

  • insured - waived the person liable
  • insurer - pays the insured sa loss na di covered ng policy
  • life ins
  • excess paym - outside coverage